Credit reference bureaux await information

Credit reference bureaus in Malawi are waiting for commercial banks to finalise updating customer information before they can start their operations, the Bankers Association of Malawi (BAM) said on Monday.

The Reserve Bank of Malawi (RBM) on October 31 2011 awarded credit reference bureau licences to CRB Africa of Kenya and Credit Data of Malawi.

Three months down the line, the two institutions are yet to start their operations in the country.

Among other things, the credit reference bureaus are expected to collect and compile information on the credit history of borrowers and enable participating financial institutions to access a prospective borrower’s credit profile.

BAM executive director Lyness Nkungula told Business News in Malawi’s commercial city, Blantyre, on Monday that the two operators are just waiting for banks to finish updating the information.

The commercial banks already submitted the information to authorities some two-years ago and, according to Nkungula, most of the information had changed, therefore, the need to update it.

“Once the commercial banks finish the process, the credit reference bureaus will start their operations,” said Nkungula.

She could, however, not give the exact date when BAM expects the process to be finalised, saying “very soon”.