Regulatory Alerts2015-01-01
Removal of Interest Rate Caps and Consumer Protection Measures
The Bank of Zambia has removed statutory interest rate caps for commercial and non-bank financial institutions, effective 4 November 2015. Financial service providers must now ensure transparent credit pricing, disclose all borrowing costs, justify fees against actual operational expenses, and secure borrower sign-off on Key Facts Statements. The central bank will actively review charged fees for reasonableness and impose sanctions under the Banking and Financial Services Act on institutions or officers that breach these new consumer protection requirements.
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