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(TIMES) Diversify lending portfolios, State urges banks

Diversify lending portfolios, State urges banks
By Business Reporter

GOVERNMENT has challenged financial institutions to diversify into lending portfolios that will cater for the agriculture, construction, tourism, small and medium entrepreneurs (SMEs) sectors.

Finance and National Planning deputy minister Chileshe Kapwepwe said commercial banks should focus on reducing lending rates, diversifying financing portfolio to include new productive sectors such as agriculture, construction, tourism and improve rural access to banking and financial services.

Ms Kapwepwe noted that risk premiums still remained unacceptably high and lending portfolio had been focused on narrow areas of lending despite the introduction of the Credit Reference Bureau (CRB).

Speaking during the Launch of Standard Chartered Bank Priority Banking in Lusaka on Friday Evening, Ms Kapwepwe explained that the Government had put in place the CRB to reduce lending risks to banks.

She said the Government would continue to maintain its aggressive stance against inflation to combat inflationary threats to ensure that it did not erode real gains in the Zambian economy.

“The financial industry should step up their efforts to bring more economic stability and prosperity to Zambia,” she said.

The Government would continue to strengthen the financial sector through the second phase of the Financial Sector Development Plan, which centres on bringing longer term stability to the sector through the intensification of the legal framework for the financial system.

“We 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,” Ms Kapwepwe said.

The move would support long term development objectives in the National vision which was to become a prosperous middle income country by the year 2030.

Ms Kapwepwe said the launch of the Standard Chartered Bank Priority banking services was a testament to the growth and improvement of the banking sector in Zambia.

Standard Chartered Bank managing director Mizinga Melu said increased economic activities had translated into a need for more access to banking services.

Ms Melu said with Priority banking the bank was differentiating itself in the market to establish a distinct competitive advantage in the premium segment of customers.

“Through Priority banking, we will provide in depth advice and tailored solutions for more complex needs, addressing different customer priority, “she said.

Ms Melu said the product offers the customer privileged and highly personalised services through dedicated relationship teams.

Labels: CHILESHE KAPWEPWE, LENDING RATES, SMEs

posted by MrK @ 3:26 AM