Lo­cal banks in credit reg­istry rush

Chronicle (Zimbabwe) - - Business -

Com­pany (Zamco), which was op­er­a­tionalised last year, the cen­tral bank has ab­sorbed NPLs amount­ing to $528 mil­lion from the bank­ing sec­tor as at June 30, 2016. To­tal NPLs amount to $750 mil­lion.

“I’m pleased to an­nounce that the de­ploy­ment process of the credit reg­istry has com­menced.

With ef­fect from 29 Au­gust 2016, all bank­ing in­sti­tu­tions started pro­vid­ing credit test data to the Re­serve Bank.

“The Re­serve Bank will en­sure that the credit reg­istry sys­tem is sta­bilised be­fore re­ports are gen­er­ated for the mar­ket,” he said.

“It’s an­tic­i­pated that the de­ploy­ment of the credit reg­istry sys­tem will be com­pleted by 30 Septem­ber 2016.”

The RBZ boss ad­vised that a ro­bust le­gal and reg­u­la­tory frame­work for the col­lat­eral reg­istry had been de­vel­oped in col­lab­o­ra­tion with the Min­istry of Finance and Eco­nomic De­vel­op­ment and the World Bank.

“The Mov­able Prop­erty Se­cu­rity In­ter­est Bill seeks to em­power the Re­serve Bank to es­tab­lish a col­lat­eral reg­istry and in­cludes pro­vi­sions on: the cre­ation of se­cu­rity in­ter­ests; per­fec­tion of se­cu­rity in­ter­ests; pri­or­ity of se­cu­rity in­ter­ests; and en­force­ment of se­cu­rity in­ter­ests,” he said.

Dr Man­gudya said it is an­tic­i­pated that the Bill would be pre­sented to the leg­is­la­ture this quar­ter.

“The es­tab­lish­ment of the col­lat­eral reg­istry will go a long way in as­sist­ing mem­bers of the pub­lic who were un­able to ac­cess credit and other bank­ing fa­cil­i­ties for lack of im­mov­able se­cu­rity,” he said — @okazunga.

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