Ronald Marambii CEO Bank of Africa is set to host the first session of the quarterly “My chat with a Bank CEO” online events. This is the first of 3 online chat events to be hosted by the Kenya Bankers Association in March 2022. The session will explore opportunities moveable assets present in facilitating further access to credit, particularly for SMEs.
How to Register for the CEO Chat
The chat room will open at 9:30 A.M East African time while the session with the CEO starting promptly at 10:00am. Users will have the ability to post comments and questions to the CEO on a first come first served basis.
Interested participants are called to register on the KBA website here. Insert your name and email address. Type a desired password and you should receive an email from KBA confirming your registration.
This edition of KBA’s my chat with a bank CEO will broadly explore opportunities that the Moveable Property Security Rights Act (MPSR) presents to MSMEs to access credit, featuring discussions on ways the use of the MPSR can be expanded.
Moveable Property Security Rights Act (MPSR)
The MPSR was enacted in June 2017, expanding credit access opportunities, particularly for SMEs. The MPSR sought to facilitate the use of moveable property as security by both individuals and corporates, introducing new types of collateral that can be used to secure credit.
In summary, the MPSR Act operates as a law governing secured transactions between a creditor and a lender where, in return for a loan advanced, the borrower gives Moveable property as security or collateral.
The framework diversifies the type of collateral a person can give as security, moving from the traditional form of security, including land, motor vehicles, machinery, and other forms of Moveable collateral such as stock in trade, household furniture, crops, bank accounts, proceeds of sale and even personal items such as phones and laptops.
For borrowers, the Registry provides an environment where it is easier for them to access credit. It also makes it easier for the borrower use one collateral as security against different loans.
The Collateral Moveable Security Property Registry serves as a public notice to any other entity interested in a particular collateral, indicating any prior interest. Should a lender choose to lend against the same collateral, they will become second or third in priority in event of default.
Read also; KBA Unveils CEO Chats Line Up to Tackle Current Trends in the Banking Industry.
KBA’s Online Live Chat with Bank CEOs is back on Frid 22 Sept
