Business / Companies
RBZ directs banks to issue loans to SMEs
19 May 2016 at 15:00hrs | Views
The Reserve Bank of Zimbabwe (RBZ) deputy governor Charity Dhliwayo has said the central bank is crafting new measures to force banks to increase support to the informal sector.
She told a parliamentary portfolio committee on SMES today that the sector is now "new economy".
She said bank loans to the sector dropped to $154 million in the first two months up from $171 million when compared to 2015.
"We are also urging them (banks) to develop collateral substitutes in order to promote access to credit by SMEs,".
Dhliwayo said banks had also been directed to open low cost savings accounts which have no administrative charges to encourage banking by small businesses.
"Unlocking SME financing requires a paradigm shift in formal banking. There is need for a mindset change when lending to SMEs as opposed to large corporates which they are used to lending to," she said.
She told a parliamentary portfolio committee on SMES today that the sector is now "new economy".
She said bank loans to the sector dropped to $154 million in the first two months up from $171 million when compared to 2015.
"We are also urging them (banks) to develop collateral substitutes in order to promote access to credit by SMEs,".
Dhliwayo said banks had also been directed to open low cost savings accounts which have no administrative charges to encourage banking by small businesses.
"Unlocking SME financing requires a paradigm shift in formal banking. There is need for a mindset change when lending to SMEs as opposed to large corporates which they are used to lending to," she said.
Source - Byo24News
