Our Journey We embarked on this reform journey a little over five years ago to this day, in a bid to enhance access to finance and stimulate economic activity, but recognised earlier on that the legal framework and its related procedures were inhibitive for lenders to confidently provide finance based on moveable property pledged as collateral.
They do so because our current capital standards apply the same risk weight to all non-mortgage loans, and the regulatory capital charges for the highest quality loans are often well in excess of the economic capital that banks internally allocate to such loans. In a world of increased competition, banks have to use every opportunity to manage their risks and capital to best advantage.