Regulatory Alerts2017-01-01
Adjustments to the Statutory Reserve Ratio and Overnight Lending Facility Rate
The Bank of Zambia has reduced the overnight lending facility rate by 1.5 percentage points to 17 percent, effective immediately. Commercial banks must apply a revised statutory reserve ratio of 9.5 percent to Kwacha and foreign currency deposits, effective August 21, 2017. These measures lower funding costs and promote credit growth throughout the economy.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/fmkts/bp
August 10, 2017
CB Circular No. : 04/2017
To : All Heads of Commercial Banks
ADJUSTMENTS TO THE STATUTORY RESERVE RATIO AND THE OVERNIGHT LENDING FACILITY RATE
Reference is made to CB Circular No. 03/2017 dated May 17, 2017.
Commercial banks are hereby advised of the following changes regarding the overnight lending facility (OLF) rate and the statutory reserve ratio.
Overnight Lending Facility Rate
With immediate effect, the OLF rate has been reduced by 1.5 percentage points to 17.0 percent from 18.5 percent.
Statutory Reserve Ratio
The statutory reserve ratio on both Kwacha and foreign currency deposits including Government deposits and vostro account deposits has been reduced by 3.0 percentage points to 9.5 percent from 12.5 percent. This measure will take effect on Monday August 21, 2017. For further details, contact the Assistant Director – Domestic Market Operations in our Financial Markets Department.
These measures are aimed at reducing the cost of funds and promoting credit growth in the economy.
[Signature]
Bwalya K. E. Ng’andu (Dr) DEPUTY GOVERNOR – OPERATIONS
Cc Governor
Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: 260-211-226844, 228888 Fax:260-211-237070 E-mail:dgo@boz.zm Web: http://www.boz.zm