Banks in Zimbabwe are soon to be forced to accept livestock as collateral for loans.

New rules will soon force commercial banks to accept a host of new items as collateral for cash loans to informal businesses.

Under the recently tabled Movable Property Security Interests Bill, moveable assets can be used as security for credit by small businesses and individuals.

Items that can be used as collateral once they are registered in the central bank’s register include livestock, televisions, computers, washing machines and vehicles.

Commenting on the new rules, Finance and Economic Development Minister Patrick Chinamasa said: “As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect on our economic realities, banks are stuck in the old ways of doing things and failing to respond to the needs of our highly informalised economy.”