By BUUMBA CHIMBULUTHE banking industry has continued to record Non-performing Loans above the prudential benchmark of 10 percent as Covid-19 impacts on the abilities of customers to effectively service their financial obligations.The industry during the first quarter of this year closed with the NPLs ratio of total loans at 11.4 percent, which is above the prudential benchmark of 10.0 percent, says Bankers Association of Zambia (BAZ).BAZ Public Relations Officer, Miriam Zimba, in a response to a press query indicated that the upsurge in the Covid-19 infection rate in the country had an impact on asset quality.“The rate of default for credit facilities remains relatively high as the negative effects of the Covid-19 pandemic amidst slowed economic activity continues to constrain businesses’ and households’ income, thereby impacting on the ability of individuals to effectively service their financial obligations towards their credit facilities (loan servicing),” she said.Meanwhile, Ms Zimba said commercial banks had continued to implore customers […]
NON-PERFORMING LOANS INCREASE
