BoT licenses two new credit bureaux

Mar 11, 2013

The Bank of Tanzania (BoT) has licensed two private Credit Reference Bureaux (CRB), an official has revealed. Credit Info Tanzania and D&B Tanzania, both based in Dar es Salaam, received their license in December 2012.

The Bank of Tanzania (BoT) has licensed two private Credit Reference Bureaux (CRB), an official has revealed.

Credit Info Tanzania and D&B Tanzania , both based in Dar es Salaam, received their license in December 2012.

It is expected the move will contribute to reducing lending interest rates in the country and help banks identify clients before extending loans, according to Barclays Bank Tanzania's managing director Kihara Maina.

Credit bureaux help collect information on borrowers and make this data available to lenders in order to help them make a decision.

They can address the deficit of information between lenders and borrowers so that lenders can make a proper risk assessment.

However, Mr Maina added that default rates were still high - around nine per cent at Barclays Bank Tanzania - and cannot be solely erased by the introduction of credit bureaux.ADNFCR-2976-ID-801553231-ADNFCR