BabuK
JF-Expert Member
- Jul 30, 2008
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Bank of Tanzania.
The Bank of Tanzania (BoT) has issued another business license to Creditinfo Tanzania Limited, a credit reference bureau based in Dar es Salaam.
A brief statement issued by the Bank, said Creditinfo which is located along Ohio Street commenced its operations last week.
It further stated that the license allows the bureau to carry out credit reference business on the Mainland and Zanzibar.
Senior officials of Creditinfo Tanzania and D&B Tanzania, another bureau were recently quoted as pledging to observe ethics and avoid a repeat of lip offs experienced in some African countries where fees were charged in dollars.
"We are not going to charge in dollars because we are working in Tanzania, we will charge in shillings only," one of them was quoted assuring the public and bankers, saying that the prices for the service will be kept as low as possible.
They also pledged to play by the rules and assured clients of lowering interest rates charged on loans gradually. "This initiative by the central bank must be commended because finally we have credit reference bureau services in Tanzania which means a lot to the economy.
Experts say the establishment of the bureau will ensure that the requisite reference system that would house the data is established, the regulatory environment to govern the Credit Reference Bureau activities is in place and the subsequent licensing of the credit reference happens.
They also say that with the establishment of the bureau, they envisage an improved credit quality in the banking industry, more inclusion of the informal sector in the banking system and most important, a better and managed economy for the country.
Some of the expected benefits accruing from the establishment of the bureaus include broader and inclusive access to credit, better performing loans, reduced cost of lending due to low risk premium and hence low lending rates.
Others are improved profitability and hence sustainable growth of the banking sector, stability in the financial sector, reliable credit history of clients, integration with other consumer/retail sectors such as telecommunication, power, health care, insurance, automotive and registries and retail outlets.
The banking sector has always been accused of charging customers high interest rates but the reality is that on average, the interest rate that the borrower ends up paying includes between 5-10 percent of risk premium that is paid by all borrowers regardless of the behavior.
SOURCE: THE GUARDIAN
