FINANCE minister Mthuli Ncube says the Reserve Bank of Zimbabwe (RBZ) is on course to operationalise the national collateral registry this month.
The system, which has been in the making since 2017, is being set up to allow the securitisation of movable property, and is part of the central bank’s financial inclusion agenda.
Finance Minister, Mthuli Ncube
“The collateral registry system is expected to go live before the end of 2021 and will be key in facilitating access to finance by targeted beneficiaries of the National Financial Inclusion Strategy, riding on the back of moveable assets as collateral,” Ncube said in his 2022 national budget statement a fortnight ago.
The minister said there has been significant progress with regards to improving access to financial services to target segments of the economy through digital financial services, introduction of new products, enhanced financial literacy and consumer protection efforts, establishment of low-cost bank accounts, and establishment of women desks and SME units in most of the banking institutions.
“Focus is now on drafting of the National Financial Inclusion Strategy II (2021-25) following the coming to an end of NFIS I on 31 December 2020.
“NFIS II will seek to integrate financial inclusion with economic development and human development in line with the NDS 1 and Vision 2030.”
According to the central bank, access and usage of financial services and products has continued on an upward trajectory with the increased adoption of digital platforms, on the back of high mobile penetration rate in the country.
The value of loans availed to small businesses, women and the youth by banks and deposit-taking microfinance institutions increased from $3,01 billion, $3,28 billion and $1,94 billion as at December 31, 2020, to $3,96 billion, $5,03 billion and $2,71 billion as at March 31, 2021, respectively.
Meanwhile, Ncube said the Credit Registry has facilitated the adoption of automated lending by financial institutions and integrated credit registry data into their credit approval processes resulting in increased utilisation from 824 592 as at June 30, 2020 to 1 317 853 cumulatively as at June 30, 2021, notwithstanding the lockdown restrictions.
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