RBZ collateral registry awaits AG’s approval

15 Oct, 2017 - 02:10 0 Views
RBZ collateral registry awaits AG’s approval Norman Mataruka

The Sunday News

Norman Mataruka

Norman Mataruka

Wilson Dakwa, Business Reporter
THE Reserve Bank of Zimbabwe has said the establishment of the collateral registry was now awaiting approval from the Attorney General’s office.

RBZ director and registrar of banking institutions Mr Norman Mataruka said this in a speech read on his behalf by deputy di­rec­tor of Bu­l­awayo re­gion Mr Kasanda Sibanda at the launch of an integrated farming project launch in Bulawayo last week.

“The President (Mugabe) assented to the Movable Property Security Interests Act in July 2017 and the effective date of the law which provides for the establishment of a collateral registry to be established through the Attorney General’s office,” said Mr Mataruka.

Collateral registry will enable borrowers to leverage their movable assets to obtain credit. This is expected to be critical in developing small and medium enterprises (SMEs) who make up about 70 percent of Zimbabwe’s economic activity although they face challenges when accessing financing from banks which only consider immovable property as collateral.

The law will provide a framework within which movable property will be used as collateral or security for purposes of obtaining loans in order to allow more people to access bank loans at reasonable interest rates. Assets to be considered include any type such as machinery, motor vehicles, livestock, and accounts receivable.

Mr Mataruka also added that five banks have since adopted the agency banking model.

“RBZ approved the agency banking model to increase proximity of financial products and services to clients, especially in rural areas. Up to date, five banks have adopted the model and more than 4 000 access points have been established under the agency banking model. The RBZ issued prudential standards to provide guidance to the market on the operational modalities of agency banking,” he said.

He added that financial service providers were leveraging on high mobile phone penetration rate which is currently over 92 percent and partnering with mobile network operators to offer mobile financial services such as payments, micro-insurance and micro-credit.

Mr Mataruka said RBZ was in the process of developing a National Financial Literacy Framework (NFLF) and the beneficiary selection criteria to be used to disburse a $15 million tourism support facility.

“RBZ is developing the NFLF which will be meant to raise awareness of financial services and products among marginalised groups. We will conduct countrywide financial literacy programmes in conjunction with other stakeholders.

“The loan facility is aimed at providing affordable finance to tourism players to boost tourism receipts. The loans will be accessed through banks and micro-finance institutions and disbursement modalities are being developed and will be communicated in due course,” he said. -@WilsonDakwa1

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