The Bankers Association of Zambia (BAZ) says the Movable Properties Act may not necessarily reduce the Non-Performing loans in the financial sector.
BAZ President Leonard Mwanza says the Act is an enhanced assurance to the lender in case a borrower defaults in repaying a loan.
Mr. Mwanza says it is also good for small scale entrepreneurs who have previously been faced with Challenges of providing adequate security when trying to borrow funds.
He further adds that it is good for the market and acts as added security for financial institutions against advances obtained from them.
Mr. Mwanza was speaking in an interview with Money FM New sin Lusaka via telephone.
Meanwhile the Patents and Companies Registration Agency (PACRA) says in excess of 3000 companies have registered for the Movable Property act since it came into force.
Company Assistant Registrar in the Commercial Unit, Christopher Mapani says commercial banks are the leading financial institutions with registrations as compared to other institutions.
Mr. Mapani says Microfinancing institutions were leading in registrations in 2017.
The Movable Properties Act was assented on 5th April, 2016 to provide for the creation of security interests in movable property so as to contribute to economic development among other objectives.
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