Microfinance: development trends and objective prerequisites of its regulation by the state

This article evaluates the role of microfinance in development of the financial services market, analyzes microfinance services in Russia at the present time and its future development trends. It also describes the main factors, which determine the appeal of the microfinance services for the small and medium-sized businesses and the general public. Basing on the analysis and review of the domestic law regulations the author formulates the principle obstacles impeding the effective development of the microfinance market in the country. The author also substantiates the necessity of subsequent improvement of the state regulation of micro finance institutions.