A Credit Reference Bureau (CRB) has been launched in the capital with a view to centralise the borrowersâ€™ records for micro-financial institutions to reduce incidents of bad debts in the financial services sector.The CRB will assist micro-finance institutions to have a proper data base for all borrowers and their credit worthiness for the benefit of the sector.
In an interview, Credflex Chief Executive Officer, Mr. Terrence Mutizwa said the bureau will make it easy for micro-financial institutions to cross reference their clients and reduce incidences of bad debts.
The financial services sector has been faced with liquidity challenges, a situation that has encouraged people to embark on multiple borrowing, particularly from micro-finance institutions without a trace.
It is reported that the financial services sector has 30% in bad loans which is set to cripple the sector if measures are not put in place to address the situation.
In his monetary policy statement, the Reserve Bank of Zimbabwe Governor, Dr. Gideon Gono underscored the need to establish a Credit Reference Bill to monitor operations of financial institutions.