Regulatory Alerts2005-01-01
Treatment of Zambian and Foreign Public Holidays in Statutory Reserves and Core Liquid Asset Computation
The Bank of Zambia mandates that Zambian and foreign public holidays be fully included within the seven-day compliance period for calculating statutory reserves and core liquid asset requirements. This directive establishes a continuous Monday-through-Sunday assessment window, ensuring that holiday-related fluctuations do not disrupt regulatory calculations. Accordingly, penalty assessments for non-compliance are applied to the net shortfall measured over this complete holiday-inclusive timeframe.
# BANK OF ZAMBIA
## OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
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**August 8, 2005**
**CB Circular No: 06/2005**
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**To**: All Commercial Banks
## TREATMENT OF ZAMBIAN AND FOREIGN COUNTRIES’ PUBLIC HOLIDAYS IN THE COMPUTATION OF STATUTORY RESERVES AND CORE LIQUID ASSETS REQUIREMENTS
The Bank of Zambia has on numerous occasions received queries on the treatment of both Zambian and foreign countries’ public holidays in the computation of statutory reserves and core liquid asset requirements.
We hereby wish to clarify that the compliance period for statutory reserves and core liquid assets requirements is 7 days, that is, Monday through to Sunday and include all Zambian and foreign countries’ public holidays. Accordingly, penalties are applied on the net shortfall taking into account the 7-day compliance period.
We hope this helps to clarify the aforementioned matter.
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**Denny H Kalyalya (Dr)**
*DEPUTY GOVERNOR - OPERATIONS*
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**Bank Square, Cairo Road P. O. Box 30080, Lusaka, Zambia**
Tel: +260-1-226844 Fax: +260-1-237070 Email: dkalyaly@boz.zm Web: http://www.boz.zm/
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