Maravi

Lend more to construction, Kapwepwe urges banks

Lend more to construction, Kapwepwe urges banks
By Mutale Kapekele
Sun 11 July 2010, 20:00 CAT

DEPUTY finance minister Chileshe Kapwepwe has urged commercial banks to increase lending to the construction and agricultural sectors. And Standard Chartered Bank Zambia has introduced the highest debit card brand that Visa offers as part of its new Priority Banking brand.

Speaking during the unveiling of Stanchart’s new infinite debt card, Kapwepwe regretted that lending portfolios for agriculture and construction sectors had remained low. The construction sector has been the fastest-growing sector in the past 10 years, with an average annual growth of 20 per cent.

“Lending portfolios remain focused on narrow areas of lending. Lending to the agriculture and construction sectors, in particular, has been lacking,” Kapwepwe said.

“Focus should be directed on reducing lending rates, diversifying portfolios to include new productive sectors such as agriculture, tourism and construction, SMEs and in improving rural access to banking and financial services.”

She said the government was aware that lending risk still remained high for commercial banks even with the introduction of the Credit Reference Bureau.

“With the introduction of the Credit Reference Bureau, the government has put in place an institution aimed at reducing lending risk to banks. Yet risk premiums still remain unacceptably high, and lending portfolios remain focused on narrow areas of lending,” she said.

“I would like to invite the commercial banking industry to step up their efforts to bring further economic stability and prosperity to Zambia. The government will continue to do its part in strengthening the financial Sector Development Plan, which will focus on bringing longer-term stability to the sector through the strengthening of the legal framework for the financial system. Government will continue to emphasise the creation of strong linkages between capital-intensive sectors and the rest of the economy so as to enhance broad-based growth.”

Commenting on the new StanChart Priority Banking services, Kapwepwe said the new product was a testament to the growth and improvement of the banking sector in Zambia.
And StanChart Zambia managing director Mizinga Melu said the new card would enable holders to have access to international banking services in 200 centres worldwide.

She explained that the new product would also make it possible for clients to make free international money transfers, access emergency cash, anywhere in the world in additional to complementary travel insurance of up to US$ 1 million and other investment services.

Labels: CHILESHE KAPWEPWE, STANCHART

posted by MrK @ 3:58 AM