This web-site has been created owing to the support of American people through the Agency of the USA on the International Development and Management Systems International (MSI). The League of credit brokers of Primorski Krai bears responsibility for the content of this web-site. Opinions expressed at the web-site may not always reflect opinions of MSI, Agency of the USA on the International Development and the USA Government.
About the League of credit brokers of Primorsky Krai (LCB)
About the League of credit brokers of Primorsky Krai (LCB)
System of participation in the work of the League:
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1.
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Members of NP «LCB of Primorski Krai»:
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-Credit and mortgage brokers;
- Banks;
- Leasing companies;
- Insurance companies;
- Credit cooperative societies;
- Consulting companies;
- Any other organizations that support the Charter, tasks and purposes of the League.
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2.
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Partners of NP «LCB of Primorski Krai»
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- State organizations, including ones of foreign countries;
- Public organizations, including ones of foreign countries;
- Mass-media;
- The Internet-resources;
- Public organizations that share the purposes and tasks of the League.
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Control system
1. General meeting of members of the League;
2. Agency of the League - is headed by Chairman.
3. Committees of the League are formed on public principles:
· Committee of credit and financial examinations;
· Committee of professional etiquette and training.
Purposes and tasks of the League of credit brokers of Primorski Krai:
Rapid development of credit market in Primorski Krai has presented a society with a system of economic relations which is innovative for it in many respects. According to the Central Bank department of Primorski Krai volumes of crediting of natural person were 16 873 454 thousands of rubles for January, 1st, 2007; while for January, 1st, 2008 they have already reached 28 569 911 thousands of rubles, i.e. the rate of growth was 168 % for a year!
The dynamics of growth of retail crediting are such that communications between population and credit institutes have developed from merely financial relations into social ones; nowadays they have significant influence on a level of public and economic conditions of Primorski Krai population.
The credit market became the significant factor in forming these conditions. Under favorable conditions one of its segments - mortgage crediting - can become the main way of solving the housing problem which is of current importance for Primorski Krai.
In the long term the credit market is considered as one of the basic tools for small business development and for forming in Primorski Krai the credit model of economy which is classical for the developed regions. Thus, the credit market is of vital importance for both economic and social development of Primorski Krai.
At the same time there are a lot of critical problems at the rapidly growing Primorski Krai credit market.
First, growth of number of the non-returns and not settled relations between borrowers and financial institutions cause rise in prices of some credit products.
Secondly, the low level of financial competence of population reduces an overall performance of credit mechanisms.
Thirdly, imbalance in the system of legal and business mutual relations between borrowers and credit institutes generates abusings, conflict situations and certain social tension around the processes of crediting.
Fourthly, deficiency of financial resources for the small business reduces rates of development of this major segment of economy in Primorski Krai and, accordingly, slows down the development of "middle class" and modern labour market.
The institution of credit brokers under the specificity of this business has the direct relation to all problems listed above. The credit broker as a matter of fact is the intermediary between credit organizations and borrowers - population and business - and he represents the interests of borrowers first of all.
However credit brokers being absolutely innovative business are in condition of formation and adaptation to social and economic needs of the market too now. This business has no developed standards of work; neither has it any clear idea of its social responsibility or system of communications with the state and public institutions. It also doesn’t have professional influence on the institutions that determine the conditions of credit market existence.
There is still no clear understanding of market roles and functions of the credit broker in society. The situation also becomes more complicated because of such a problem as activity of so-called «black brokers». The problem of «black brokers» is much more serious than it can be estimated today. This problem can be solved by self-regulation of broker organizations with support of financial institutions, banks and the state. Preventive maintenance manages more cheaply treatment.
Creation of association of professional brokers competing for consumers is a way favorable for everyone. Here is USA statistics: there are about 44,000 of independent brokers there and they make 64 % of all mortgage loans though they make up only 10 % of number of credit experts.
It is not hard to stop the development of brokerage in Primorski Krai; but that will lead to the contraction of credit. Finance is growing and banks have to invest their money somewhere. Banks are bureaucratic organizations. They have to be like that because they account for the investors. The nature of brokerage is search and creation of deals, i.e. enterprise.
The issued credit is a balance of enterprise and bureaucratism. Each party should carry out the duties conscientiously. It is extremely difficult for the bank to operate effectively on each side, i.e. to be the enterprising bureaucrat. This is an objective necessity for financial brokerage existence.
In these conditions creation of professional public organization in Primorski Krai should contribute to more precise understanding of communicative and social role of credit brokers.
Being united in public organization – League of credit brokers of Primorski Krai, participants of the Primorye market of credit brokers assume to generate the unified mechanism to accomplish public, informational and propagandistic tasks of this field. At the same time the League does not have any business tasks or pursue any commercial interests.
Taking into consideration social factors of "credit boom" basic public mission of the League is to contribute to formation and development in Primorski Krai such a credit market for it to meet such criteria as:
· Efficiency - maintenance of successful development of creditors and borrowers; conscientiousness and quality;
· Transparency;
· Openness.
The aims of the League:
1. Integration of the market of credit brokers, improvement and development of this market on the basis of self-regulation, forming working standards of participants of the market and maintenance of their transparency and conscientiousness;
2. Development of financial competence of population; formation of adequate and positive image of a credit broker;
3. Propagation of brokerage as a tool of credit market;
4. Providing conditions that promote formation of principles of open, responsible and qualitative crediting in Primorski Krai.
Tasks of the League:
1. To develop techniques of work of credit brokers; to distribute professional knowledge and exchange experiences to improve the quality of credit portfolios of credit and financial institutes of Primorski Krai;
2. To generate standards of work for participants of the brokerage market and to create together with other public and state institutes the system of realization of given standards through standardization of requirements for participants of the market.
3. To provide openness and "transparency" of the brokerage market and to contribute to exposing “black brokers” and other unfair participants of the market.
4. To participate in programs of improving financial competence of population; to popularize understanding of business and social roles of credit brokers.
5. To provide interaction between credit brokers and state and public institutes who determine conditions of development of credit market in Primorski Krai, including the regulating and legislative organizations, mass media, etc.
6. To generate the system of consultation and informing population and businessmen about various issues of crediting.
7. To generate the system of information exchange between participants of the market of credit brokers; to promote their active participation in public, legislative, informational and other initiatives in credit market of Primorski Krai.
The basic directions of communications (target audience) of the League:
· Population and business-environment; potential clients of credit market;
· Authorities and public organizations;
· Mass media of Primorski Krai;
· Bank community of Primorski Krai;
· All other organizations sharing the Charter, purposes and tasks of the League.
INFORMATION WORK AND DIRECTIONS:
· Creation of the web-site of the League;
· Coverage of problems of credit market of Primorski Krai;
· Creation of public committees («Committee of credit and financial examinations», «Committee of professional etiquette and training»), participating in informational work of the League;
· Organization of informational work accordingly to the plan of organizational activity of the League;
· Stimulation of mass media on coverage of credit market of Primorski Krai.
ORGANIZATIONAL ACTIVITY
1. Organization of public presentation of the League;
2. Organization of accepting new members for the League; creation of the system of communications between members of the League;
3. Organization of fundraising with credit organizations, international funds sharing purposes and tasks of the “League of credit brokers of Primorski Krai”;
4. Introduction of the system of standardization of requirements for the participants of the market of credit brokers of Primorski Krai;
5. Program «Protection of economic rights»;
6. Program “Development of financial competence of population”;
7. Program «Ratings of the financial institutions working in Primorye».