Bank of Zambia deputy governor of operations Dr Bwalya ng’andu says the development of appropriate regulations that will protect the consumers against fraud and anti-competitive practices is a critical and necessary response to the innovations brought about by the mobile telephone technology.
Dr Ng’andu says it is however important to understand that by its nature technological innovation can achieve an overnight quantum leap by the sheer ingenuity of one person and where this happens, there is a danger that the development of appropriate regulation can lag behind technological advancement.
The central bank deputy governor of operations has stated that in this case the challenge is to ensure that the financial institutions keeps up pace with technology so that they can be able to offer the required protection to all who access financial services using the new and unconventional payment systems.
He has assured the financial institutions that the central bank will focus its attention on the development of a robust regulatory framework that will address the key hot button issues like prudential requirements, particularly those that relate to liquidity management and capital for infrastructure.
Dr ng’andu has stated that to strike a balance between a robust regulatory framework and the need for the framework not to hinder innovations and allow business to flourish, the banks efforts in establishing a robust framework will be anchored on five key internationally accepted practice principles.
The central bank deputy governor of operations was speaking in Lusaka yesterday after officially opening a two days 3rd celpay mobile banking conference at mulungushi conference centre./////////