Regulatory Alerts2000-01-01
Bank of Zambia Circular 2/2000: Risk-Based Approach to Inspections
The Bank of Zambia mandates all commercial banks to implement a risk-based inspection framework that evaluates seven core risk categories: credit, liquidity, operational, market, strategic, reputational, and legal. Supervisors will assess each institution by measuring inherent risk levels, the adequacy of internal control systems, and the trajectory of risk exposure to assign an overall risk rating. Banks are required to establish comprehensive risk management policies detailing measurement and control methods and must submit these documents to the regulator by 31 May 2000.
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