What happened
The Bank of Zambia raised concern over elevated non-performing loans associated with public workers, highlighting risks from multiple borrowing, off-payroll credit and weak affordability assessment.
The notice also points to inconsistent use of Credit Reference Bureau information and reminds regulated lenders that debt-service-ratio and affordability requirements are mandatory.
What AMIZ members should review
Members should review public-worker lending practices and ensure that affordability assessment, debt-service-ratio limits and Credit Reference Bureau checks are consistently applied.
Institutions should also examine underwriting controls, data quality and the monitoring of both payroll and off-payroll obligations.