The inaugural Financial Markets Indaba co-hosted by Emergent Research and Thompson Reuters yielded very health debates as financial experts and other business stakeholders converged to deliberate on ideas that are viable to resuscitate our cash tied economy.
By Shingie Lev Muringi
One of the major highlights of the indaba included a very refreshing revelation by the Zimbabwe Asset Management Corporation (Zamco), stating that the Reserve Bank of Zimbabwe was at an advanced stage in the setting up of a highly technological powered National Credit Bureau.
Mr. Taurai Duku, an Investment Officer at ZAMCO explained that the national credit bureau is meant to play a very critical role in the credit services provision where all the local financial institutions will have a reference point when vetting borrowers.
Earlier on, the Chief Executive Officer of Steward Bank, Dr Lance Mambondiani had reflected that, currently Zimbabwe must focus on the provision of credit services across all sectors rather than going ahead with main focuses on Non Performing Loans (NPLs).
Now, the RBZ has launched a very applaud-able move to create a national credit bureau to be used across the banking sector where bankers will be free from the shadows of information asymmetry when vetting borrowers.
In Zimbabwe, people tend to borrow from several banks without settling their previous loans, in a market overcrowded with defaulters. But with the setting up of a credit bureau that will have a complete massive database of all borrowers, bankers will be able to vet borrowers with the critical information available for them from the national credit database.
Countries such as South Africa have the same setup where a National Credit Bureau has been established to provide all the relevant information on borrowers to lenders so as to avoid defaulting. In SA for example, one cannot borrow a loan from Nedbank without paying off a previous loan from ABSA.
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