The Bank of Zambia has encouraged financial service providers to be responsible in lending funds to their customers in order to reduce the non-performing loans.
Government, through the Ministry of Finance, says it is looking forward to reducing the non-performing loans in the financial market from the current 11.9% to less than 10%.
BoZ Senior Analyst – Licensing and Enforcement Silvester Kabwe says the financial service providers should avoid lending individuals and groups that have no capacity to pay back the loans in order to reduce the non-performing loan rates.
Mr. Kabwe was speaking when he featured on Money FM Business Radio’s Business for Breakfast Show in commemoration of Financial Inclusion Week under the topic Microfinance and Financial Inclusion.
Mr. Kabwe says the bank is trying by all means to promote competition on the financial market.
He says the enactment of Banking and Financial Services Act No. 7 of 2017, which came into effect in April this year, is one such legislations that regulate the market and protect the consumers.
Mr. Kabwe states that the act has enhanced provisions that protects the consumer as well as guide the market conduct.