Non performing loans analysis - Mr. Francis Macheka: Page 4 of 4

  1. an institution, we have the AFC Act at our disposal that empowers us to dispose of defaulters’ pledged assets without going through the courts. The Act empowers the Bank to auction defaulters’ assets after going through due process.


  1. Creation of a credit reference bureau. The RBZ is in the process of creating a credit reference bureau that will ensure that those wishing to avail credit facilities are vetted before approval. This was after it was realized that most defaulters are multi-banked thereby worsening both their situations and those of lenders .




With all these challenges of NPLs, corporates and individuals should learn to understand that lending is a major line of business for banking firms as they provide credit for a wide array of business purposes.


The process of lending represents a key source of funds for the business sector while being an important line of business for the banking industry. The process of credit should not be disturbed through defaulting by borrowers. It is important that borrowers should understand that lenders only make loans when they think they’ll be repaid.