It is thus with the need for further economic and social development that consumer finance should expand in line with domestic savings. Ladies and Gentleman, Once again we are back at the regulator’s dilemma of regulating without dampening the exuberance and vitality of the market. Consumer finance need not be damaging as long as we can be sure that the individual or household have the prerequisite responsibility, maturity and financial literacy to manage their finances. Both the service provider and regulator must share the task of addressing these concerns and issues. lt is hoped that service providers will not only focus on improving their bottom line but to also consider the social impact of their business model. Through the use of gimmicks, service providers risk enticing under-qualified and immature applicants whose inability to manage their finances will only exacerbate social costs and NPLs. As such, if social impact considerations become embedded in the process of determining business strategy for consumer finance, service providers could easily address the social concerns previously mentioned, while at the same time securing quality growth in the consumer finance market. However, it is understood that competition may pressure service providers to leave behind these social concerns. Thus it is the duty of the regulators to issue rules and guidelines that will level the playing field in order to prevent consumer finance from causing an unsustainable bubble. The industry has already seen the Bank of Thailand’s forays into the credit card market with rules governing minimum monthly incomc, interest rate ceiling, fees etc.
Caleb M Fundanga: Bringing banking facilities closer to the people in Zambia Speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the official opening of the Stanbic Bank Matero Branch, Matero, Lusaka, 2 February 2005. *  *  *  •  Your Excellency, the South African High Commissioner to Zambia, Mr. Mzwandile Masala  •  Honourable Chance Kabaghe, MP - Matero Constituency  •  Your Worship the Deputy Mayor of Lusaka  •  The Town Clerk, Lusaka City Council  •  Stanbic Africa Regional Director, Mr. Robert Mbugua  •  Representative of Stanbic Africa Retail, Mr. Lincoln Mali  •  Managing Director of Stanbic Bank Zambia, Mr. Larry Kalala  •  Distinguished Invited Guests  •  Ladies and Gentlemen. I feel extremely honoured to have been invited to officiate at this important occasion to mark the official opening of the Stanbic Bank Matero Branch. Sometime last year, Stanbic Bank management informed me that they would be opening two new branches, namely the Arcades Branch and the Matero branch, and asked me to choose which one I would prefer to officiate at. Without much hesitation, I choose to officiate at the opening of the Matero Branch. The reason was very simple. For those of you that are familiar with the development of the city of Lusaka, you will recall that Matero compound is one of the oldest communities in Lusaka.