Staff Reporter
The Reserve Bank of Zimbabwe has instructed banks to submit monthly credit reports as it prioritises the identification of risk concentrations in the face of the impact of Covid 19 .
A credit risk is a hazard of default on a debt that may arise from a borrower failing to make required payments. In his monetary policy statement central bank governor John Mangudya said the identification of risk concentrations from an overall portfolio perspective was paramount 19 during this pandemic.
In particular, he said reviewing sectoral concentrations of loans was critical given that the pandemic has affected various sectors
differently. “The COVID-19 pandemic and the attendant lockdowns to contain the spread of the pandemic has impacted negatively on the cash flows of many consumers and businesses. Against this background, with effect from 30 September 2020, banking institutions are required to submit monthly credit reports on the status of each of their top twenty loans/exposure and a clear strategy for action where there is deterioration in quality of the concerned loan,” he said.
Mangudya went on to say banking institutions were also now required to submit to the Bank updated cyber risk management policies by 30 October 2020, taking into account COVID-19 experiences to date.
This follows the face that COVID-19 pandemic has made a compelling case for digital banking. He said accelerated digitisation by banking institutions in the wake of COVID-19 and the remote working arrangements have expanded the
attack surface of banks’ information technology networks.
“Critical business functions are more exposed to opportunistic and targeted cyber-attacks by criminals and thus increasing consumer protection risks. Cyber and anti-fraud controls are critical for
banking institutions during and post COVID-19. Banking institutions are called upon to remain alert to such threats and activate appropriate risk management responses and to conduct ongoing consumer
education campaigns.” He said
He reiterated that banking institutions should review the adequacy of their ICT systems.
