By MAIMBOLWA MULIKELELA –
THE BANK of Zambia (BoZ) has directed commercial banks to support the development of the National Financial Switch which is meant to inter-connect Automated Teller Machines (ATMs) in Zambia.
The National Financial Switch is aimed at inter-connecting ATMs to facilitate convenience banking.
BoZ deputy Governor in charge of administration Kankasa Mabula said the National Financial Switch was an important project in developing
infrastructure in the financial sector.

Dr Mabula

Dr Mabula said during the Bankers Association of Zambia (BAZ) cocktail in Lusaka that all commercial banks should support the development of the National Financial Switch that would be highly beneficial to ATM users.
“I want to urge all commercial banks to support the development of the Financial Switch which is going to facilitate the way we do business in the area of payment and in this regard we are moving too slow and we are about to issue the directive to ensure that commitments made by
the commercial banks are implemented,” she said.
Dr Mabula appreciated the role of the BAZ in supporting the growth of the financial sector.
BAZ outgoing chairperson Shankardas Gupta said the banking sector had remained capitalized and profitable and was geared to embrace new technologies to drive affordable and inclusive financial services across the country.
Mr Gupta said the sector posted improved growth in lending, deposits and total assets in 2014.
Total deposits increased to K34, 942 million in 2014 from K30, 707 million in 2013 representing an increase of 13.8 per cent.
He said total lending increased to K21, 665 million in 2014 compared
to K18, 980 million in December 2013 representing an increase of 14.1 per cent.
Total assets increased to K48, 592 million in 2014 from K41, 953 million in 2013 representing an increase of 15.8 per cent.
He said during his tenure the BAZ held several constructive discussions on Statutory Instrument (SI) No. 33 and 55, the exchange rate issues in the first half of 2014 and the implementation of the new cash management systems among others.
Incoming BAZ chairperson Clergy Simatyaba appealed to the Government and the BoZ to embrace the efforts of his organisation as a strategic partner to economic stability and wealth improvement.
“We as an association would like to see a situation where regulatory policies are put in place through a consultative process based on researched and analysed data to ensure policies are aligned to market fundamentals,” Mr Simatyaba said.
He said it was commendable that banks responded by increasing support to micro, small and medium entrepreneurs (MSMEs), branch expansion programmes and literacy programmes.
“It is my sincere expectation that these activities will be increased,” Mr Simatyaba said.