Regulatory Alerts2014-01-01
Bank of Zambia NB Circular No. 1/2014 – New Capital Adequacy Framework
The Bank of Zambia has revised its capital adequacy framework for non-bank financial institutions, significantly increasing minimum primary paid-up capital requirements across multiple categories. The updated framework mandates that at least eighty percent of capital consist of nominal common shares, while non-compliant institutions must submit a progressive recapitalization plan to meet the new thresholds by December 31, 2016. Implementation will be formalized through a Government Gazette publication, establishing clear milestones for capital buildup and ensuring institutions maintain sufficient high-quality regulatory capital to absorb losses on a going-concern basis.
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