adminFollowing several meetings between the RBZ, Ministry of Finance and the National Credit Bureau, a fully functional credit bureau is not far away.
In a letter to directors of the credit bureau, RBZ senior division chief Mr Norman Mataruka said after evaluation a number of issues needed attention.
“We advise that the preliminary evaluation of your application was done and a number of issues were found to be outstanding and require your urgent attention,” Mr Mataruka said in a letter dated March 1, 2013.
Directors of National Credit Bureau have been asked to provide their net worth statements certified by an auditor registered in terms of the Public Accountants and Auditors Act Chapter 27:12.
The founding directors were also recently asked to provide affidavits attested to by proposed directors and senior managers, and containing declarations on insolvency, bankruptcy, civil judgments for debt, civil liability for fraud or misconduct, assignment to, arrangement or composition with creditors in Zimbabwe or any other country.
Furthermore, the affidavits should contain information on criminal convictions, sentences served, free pardons granted in Zimbabwe or outside, non-performing loans in or outside the country, directorships and shareholding (held directly or indirectly) in companies.
The RBZ said the directors needed to make representations that they have never been involved in the directorship or management of a failed banking or financial institution and/or bank holding company.
Banking regulations do not allow directorships of people responsible for the failure of financial or banking institutions, including those placed under liquidation by the central bank.
In addition, this regulatory requirement also forbids directorship in financial institutions of people that have at some point been suspended, removed from office, associated with any other business practices or conducted them in a manner that caused doubt on
the competence, integrity or soundness of their judgment.
Other requirements that the directors have been asked to provide to the regulatory authorities include terms of reference of the board and sub-committees and more data on the bureau’s transaction fees.
Since the advent of the multi-currency system in 2009, there has not been a functional credit bureau in the country.
Following the several engagements with the central bank and the Ministry of Finance the National Credit Bureau has also struck an agreement with the Zimbabwe Association of Microfinance Institutions.
ZAMFI executive director Mr Godfrey Chitambo confirmed this, saying the organisation had encouraged its members to register with the credit bureau as part of their efforts to enhance profitability.
“The National Credit Bureau is one of the remaining few that we think that we think has a good track record and their cost is affordable,” he said.
Since the advent of the multi-currency system in Zimbabwe in 2009, there has not been a functional credit bureau in this country.
Mr Chitambo said a credit bureau was critical as it provided information on borrowers,which helps to reduce the risk of default.
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