The Central Bank has identified cases of microloans issued under the guise of bank loans. This is stated in the message of the regulator.
In their remote channels, banks offer citizens to obtain borrowed funds, but they do not inform them which contract will be concluded and with whom — with the bank or its subsidiary microfinance organization. This information is either not provided to the consumer at all, or is not communicated clearly enough.
As a result, customers often do not understand which product they have issued — a loan or a loan — and on what terms. In addition, banks are actually replacing a person's choice, which undermines confidence in the financial market, the Central Bank notes.
The Central Bank found such practices in six credit institutions, two of which are systemically significant. Banks have been asked to change their approaches to information within a single time period.
