BANKS have a responsibility to advise customers on the best loans that they can afford to avoid high collateral for those who do not have assets to declare, First National Bank (FNB) chief executive officer Johan Maree has said.
Mr Maree said he was aware that banks somehow pushed clients over the hedge by asking them to declare high collateral before obtaining a loan.
Speaking in an interview, Mr Maree said banks had a responsibility to educate and advice customers before lending them mon ey as loans.
“Any financial institution need to be responsible lenders. We must know what our customers can afford. We must ensure that our customers can afford the products we offer them,” he said.
“It is alternatively about being responsible when lending. This is not about trying to compete with other people. From a consumer perspective, it is all about what they can afford to pay,” said Mr Maree
Meanwhile, Mr Maree said FNB had made some adjustments in its interest rates following increase in the policy rate by the Bank of Zambia (BoZ) from 12.5 percent to 15.5 percent.
Mr Maree explaned that if prices of money was high, then the price of people paying for lending and borrowing equally went up.
“Obviously Banks will make adjustments, the reason is if the policy rate goes up, there is some tightening happening, and again the cost of money is becoming more expensive then borrowing will also become expensive, he said.
He however said the bank ensured that customers were confortable with the adjustments.