Banks to track defaulters

The mechanism, which becomes operational this month, comes against the backdrop of a high credit defaultment rate caused by heavy indebtedness to multiple financial institutions by consumers, among other factors.

According to the current president of the BAB, Danny Zandamela, the mechanism has been set up by the Credit Reference Bureau Africa Limited.
Via a secured internet link, the mechanism will be able to track the historical payment record of a borrower as well as track the encumbrances and loan exposure of a borrower across the whole banking sector.