Maravi

CRB still collecting information - Thole

CRB still collecting information - Thole
By Fridah Zinyama and Carol Jilombo
Thursday March 15, 2007 [02:01]

BANKERS Association of Zambia president Sherry Thole has said the Credit Reference Bureau (CRB) is still collecting information from various banks and financial institutions before it can fully start operations. The CRB was formally launched early this year but has not become operational due to the process of data collection that is still ongoing. Thole in an interview said the launch of the bureau would help to change the culture of banking in the country.

“The CRB will help reduce the risk of lending to the public, as history indicates that Zambians have a bad credit culture,” Thole said. She said most banks would be willing to offer more services which are credit related as they would have first hand information about the history of the customers they will be dealing with. “So we are waiting for the bureau to finish the data compilation,” Thole said. She explained that the bad credit culture had affected banking in the country as most banks are hesitant to have dealings with small and medium enterprises.

In January, CRB Africa Ltd chief executive officer Stephen Mills had said the launch of the bureau would change the borrowing culture of Zambia. He said CRB had received extensive support from the Ministry of Finance and Bank of Zambia (BoZ). Mills said the CRB would be operating under license from BoZ. He said the institution would serve commercial banks, insurance companies, micro-finance institutions and non-governmental organisations and other service providers. “We will be able to help financial providers reduce the risk of credit thereby increasing access to credit to the Zambian entrepreneurs,” Mills pointed out.

He explained that credit worthiness is designed to protect the rights of the consumers plus individuals whilst protecting the insurers of credit against people who for one reason or another do not want to live up to their credit responsibility. “Equally people and companies who are credit responsible can use the bureau for easier access to credit due to their good credit history,” he said. Mills emphasised the importance of bureau as a service provider and not a witch finding venture.

Labels: BANKING, CRB

posted by MrK @ 5:58 AM