Regulatory Alerts2008-01-01
Bank of Zambia Directive on Credit Data Provision and Credit Reference Services Utilization (2008)
The Bank of Zambia mandates all licensed financial service providers to utilize credit reference agencies before granting credit and to submit corresponding credit data for all post-implementation loans. This directive, effective immediately under the Banking and Financial Services Act, applies to banks, financial institutions, and licensed financial businesses. Failure to comply is classified as an unsafe and unsound practice that may trigger supervisory action by the central bank.
# BANK OF ZAMBIA
## OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
December 10, 2008
CB Circular No. 12/2008
TO: All Credit Providers
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## BANK OF ZAMBIA DIRECTIVE
### THE BANKING AND FINANCIAL SERVICES ACT, (PROVISION OF CREDIT DATA AND UTILISATION OF CREDIT REFERENCE SERVICES) DIRECTIVE, 2008
In exercise of the powers contained in Section one hundred and twenty five of the Banking and Financial Services Act, Chapter 387 of the Laws of Zambia, the following Directive, which take immediate effect, are hereby made:
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### TITLE
1. This Directive may be cited as the Banking and Financial Services Act (Submission of Credit Data and Utilisation of Credit Reference Agencies by Credit Providers) Directive, 2008.
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### APPLICATION
2. This Directive shall apply to all banks, financial institutions and financial businesses licensed under the Banking and Financial Services Act, Chapter 387), whether or not constituted by any Act.
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### INTERPRETATION
3. In this directive, unless the context otherwise requires:
- “credit reference agency” means a credit reference agency licensed by the Bank of Zambia; and
- “financial service provider” means a bank, financial institution or financial business.
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## DIRECTIVE
4. All financial service providers shall:
(i) at all times use the services of a credit reference agency before granting credit to any customer; and
(ii) submit credit data to a credit reference agency in respect of all credit granted to a customer after the coming into force of this Directive.
The Bank of Zambia considers that the omission or failure by any credit provider to adhere to or comply with this directive constitutes an unsafe and unsound practice and may attract Supervisory Action in terms of Section 77 of the Banking and Financial Services Act.
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Dated this **10th** day of **December**, 2008
Bank of Zambia
P O Box 30080
LUSAKA
Denny H Kalyalya (Dr)
DEPUTY GOVERNOR - OPERATIONS
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Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: +260-211-226844 Fax: +260-211-2370701 E-mail: dkalyaly@boz.zm http://www.boz.zm
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