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Reserve Bank of Zimbabwe (RBZ) governor John Mangudya says the Credit Reference Bureau (CRB) system is expected to go live by end of this month.
A Czech Republic credit checker, Creditinfo was in April 2016 awarded the tender to set up the CRB system at a cost of $1,8 million as the central bank continues with efforts to improve credit risk management in the financial sector.
The apex bank established the Credit Registry Department as a unit in the Bank Supervision Division which will co-ordinate the collection of credit information from all banking institutions and micro-finance institutions and maintain the databank for the credit registry.
Dr Mangudya said setting up of the bureau has now been completed and will start to operate by end of August.
“By end of this month we will be going live. We are happy with the system services that have been installed and this is going to minimise credit risk,” he said.
The continued absence of a comprehensive credit reference environment in Zimbabwe has negatively impacted the operations of the financial services sector, resulting in them battling high non-performing loans (NPLs).
Analysts say the bureau should enhance the verification process of borrowers, enable bankers to assess credit risk and reduce the level of NPLs in the banking sector.
It will also allow lenders to determine how much and at what rates to lend, as well as promote transparency in the economy to the extent of greater sharing of information, making financial institutions aware of their customers’ financial exposures.
Significant progress in the development of the CRB comes as the Reserve Bank Act is being amended to provide backing for its establishment together with the establishment of a collateral registry.
Technical assistance has already been provided for through the Zimbabwe Reconstruction Fund as part of the World Bank’s efforts to improve access to finance for micro, small and medium enterprises (MSMEs)under the umbrella of the Zimbabwe Investment Climate Programme.
With the CRB system coming on board, the RBZ will also establish an internal unit that will licence and monitor private credit bureaus. — Wires.
Online Reporter