CRB to reduce non-performing loans

The Credit Reference Bureau (CRB) that will be established this year is expected to lower the level of non-performing loans within lending financial institutions, Central Bank Vice Governor, Amb. Claver Gatete, has said. He said there is high risk associated with banks lending to bad debtors due to lack of enough information about particular clients.
Central Bank Vice Governor, Amb. Claver Gatete
Central Bank Vice Governor, Amb. Claver Gatete

The Credit Reference Bureau (CRB) that will be established this year is expected to lower the level of non-performing loans within lending financial institutions, Central Bank Vice Governor, Amb. Claver Gatete, has said.

He said there is high risk associated with banks lending to bad debtors due to lack of enough information about particular clients.

The CRB is aimed at providing enough credit information on companies and individuals borrowers.

“Banks couldn’t identify bad and good clients and the risk of lending clients who didn’t have the capacity to pay back were high,” Gatete said.

He added that some clients have caused problems to almost every bank in the country with out being recognized.

Credit information will give good clients a preferential rate and access to resources or finances will be much easier.

“Good clients (individuals, companies) have lower rates because credit information identifies the risk involved in lending a bad client,” Gatete emphasized.

Rwanda Credit Reference Bureau will be operational in May this year and operated by Credit Reference Bureau Africa.
South Africa’s Credit Reference Bureau Africa emerged the best among the three companies that were competing to establish a CRB in Rwanda.

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