Regulatory Alerts2021-01-01
Bank of Zambia Circular No. 10/2021 on Submission of Updated Credit Data to Credit Reference Agency
The Bank of Zambia has directed all commercial banks and non-bank financial institutions to submit timely, accurate, and complete credit data to Credit Reference Agencies. Citing inconsistent compliance that undermines the credit reporting system, the regulator will now levy penalties of up to 200,000 fee units on financial service providers that fail to meet this obligation. Institutions must therefore strictly adhere to the 2020 Directives to ensure system stability and avoid financial sanctions.
[Logo: Bank of Zambia]
BANK OF ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/bsd/nbfis/am
June 18, 2021
CB Circular No. : 10/2021
To : All Chief Executive Officers of Commercial Banks
All Chief Executive Officers of Non-Bank Financial Institutions
SUBMISSION OF UPDATED CREDIT DATA TO CREDIT REFERENCE AGENCY
As you all may be aware, the credit reporting system is an important element of the credit market infrastructure. It underpins responsible provision of credit by eliminating information asymmetries between the lenders and borrowers thereby supporting the safety and stability of the financial system.
In March 2020, the Bank of Zambia (BoZ) issued the Banking and Financial Services, (Provision of Credit Data and Utilisation of Credit Reporting Agencies) Directives, 2020 that require financial services providers to submit to a credit reporting agency relevant credit information of a data subject to whom it has provided credit.
The Bank of Zambia has observed that financial service providers have in some instances not taken seriously their obligation to submit credit data to the credit reporting agency thereby undermining the efficient operation of the credit reference system.
In this regard, you are hereby reminded to ensure that your institutions submit timely, accurate and complete credit data to the credit reference agency. The BoZ will henceforth, as provided for in the Provision of Credit Data and Utilisation of Credit Reporting Agencies Directives, levy a penalty of up to two hundred thousand fee units on any financial service provider that does not comply with its obligation to submit credit data to the credit reference agency.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR – OPERATIONS
Cc Director – Bank Supervision Director – Non-Bank Financial Institutions Supervision
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm