Regulatory Alerts2025-01-01
The Banking and Financial Services (Deposit Insurance) Directives, 2025
The Bank of Zambia has issued the Banking and Financial Services (Deposit Insurance) Directives, 2025 to establish a mandatory Deposit Insurance Scheme and Fund that protects depositors and safeguards financial system stability. The directives compel all licensed banks and financial institutions to join the scheme, pay risk-based and annual premiums into a centrally managed fund, and strictly prohibit passing these costs onto depositors. They define insured deposit coverage limits, outline specific exclusions such as secured and insider deposits, and mandate that the regulator reimburse eligible depositors within thirty days of a member institution's failure while retaining subrogation rights and administrative penalty powers.
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