Zambia’s financial system solid – BoZ

Zambia’s financial system solid – BoZ
By BUUMBA CHIMBULU
THE Zambian financial system has demonstrated a level of stability, which to some extent has been derived from the strong capital positions that have characterised the local banking industry in the past years.
The financial landscape globally as well as in Zambia is changing rapidly while the sector remains stable, according to the Bank of Zambia (BoZ) Director – Bank Supervision, Gladys Mposha.
Ms Mposha observed that there were a number of trends that had emerged partly due to the pandemic, for instance, enhanced digitalisation and remote working.
This is according to the Zambanker newsletter which is a BoZ Journal.
“These trends have brought to the fore, innovations centered on the use of technology in working and delivery of financial services. Use of technology in financial delivery is largely underpinned by lower costs and economies of scale, which can enhance the efficiency and expand the reach of financial services to previously unbanked population,” she said.
Ms Mphsha therefore urged banks and other financial institutions to therefore seize the opportunity and optimise the digital era.
She explained that access to finance remained a priority objective for both Government and the Bank of Zambia.
BoZ, Ms Mphosha said, would thus, continue to encourage financial service providers to take advantage of opportunities arising from the general positive economic outlook on account of improving macroeconomic environment.
“The BoZ will also continue to implore financial service providers to pay more attention to understanding the enormous business opportunities in the Zambian market and provide solutions especially to the Small and Medium Enterprises (SMEs).
“SMEs are the key drivers of economic growth while women have been disadvantaged for a long time. Some financial institutions that have had facilities extended to women either as individuals or women groups, have proved that women tend to be loyal and good borrowers,” Ms Mphosha said.