Region

Jurisdiction

Regulator

1996-01-01

Bank of Zambia Circular 09/1996 on Insider Lending and Large Credit Exposures

The Bank of Zambia mandates all commercial banks to submit monthly reports detailing large loans and insider lending within ten working days following each month. This directive implements Statutory Instruments No. 96 and No. 97 of 1996, which establish new regulatory frameworks and compliance standards for credit exposures and insider transactions. Banks must also immediately rectify any existing credit facilities outstanding as of 21 June 1996 that violate the newly enacted regulatory provisions.

Zambia

Bank of Zambia

Tel. 228888/228903 20

BANK OF ZAMBIA
P.O. Box 30080 Lusaka
10101

11 July 1996

C B Circular No.9/96

TO : ALL COMMERCIAL BANKS

Dear Sirs

INSIDER LENDING AND LARGE CREDIT EXPOSURES

Your attention is drawn to Statutory Instrument No.96 of 1996 relating to The Banking and Financial Services Regulations (Large Loan Exposures) Regulations, 1996 and Statutory Instrument No.97 of 1996 relating to The Banking and Financial Services (Insider Lending) Regulations, 1996 which were gazetted on 21 June, 1996.

Please be advised that every bank shall, within ten working days following each month, be required to submit to the Bank of Zambia a monthly report of its large loans and insider lending in the forms prescribed by the referred to statutory instruments.

Further, for every loan, advance or extension of credit which is outstanding as of 21 June, 1996 that is in violation of the regulations, all banks are required to make the necessary arrangements to ensure compliance to regulations 13 and 10 of the Large Loans Exposure and Insider Lending regulations respectively.

Yours faithfully

S. Musokotwane (Dr)
ACTING DEPUTY GOVERNOR