The introduction of a Credit Reference Bureau is a key milestone for our growing economy.
The establishment of a credit information reporting mechanism, will go a long way in addressing the prevalent problem of non-performing assets within the entire banking sector, while rewarding good loan payment behaviour.
There have been reports that the process of accessing loans is complex, owing to the fact that the lending institutions have enacted strict rules to reduce the risk of defaulters. People with a clean repayment history, have had to live with the inconveniences caused by the defaulters.
Once the Bureau is fully operational, bankers will have access to the credit profiles of clients. It is such information that will reduce the incidences of financial institutions lending to habitual defaulters.
It will also allow borrowers with good repayment histories to continue accessing credit facilities at improved conditions. The idea is to boost the workings of the financial services providers, which is ultimately linked to the proper functioning of the entire economy.
Furthermore, this new system of sharing credit information will go a long way in reinforcing the Central Bank’s role of monitoring the financial institutions in the country.
Finally, part of this new drive should also focus on a robust sensitization program to enable citizens fully understand the operation and advantages of this new system.