Local banks in credit registry rush
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.