Regulatory Alerts2025-01-01
Bank of Zambia Banking and Financial Services Capital Adequacy Rules 2025
The Bank of Zambia has issued the 2025 Capital Adequacy Rules and five supporting Directives to strengthen financial sector resilience by aligning domestic regulations with Basel II and III reforms. The framework establishes tiered capital requirements, mandating a 6 percent Common Equity Tier One ratio, an 8 to 10 percent primary capital ratio, and a 6 percent non-risk-based leverage ratio for banks and financial institutions. These rules apply proportionally across different financial service providers, introduce capital conservation buffers, and require parallel reporting until December 2025 before full compliance takes effect.
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