Regulatory Alerts2016-01-01
Discrepancies in the Classification and Provisioning of Loans
The Bank of Zambia requires all commercial banks and financial institutions to align their loan classification and provisioning practices with Statutory Instrument No. 142 of 1996, addressing widespread understated or missing provisions observed during on-site examinations. Institutions failing to meet these minimum provisioning standards will face direct supervisory penalties and enforcement actions. Furthermore, the Chief Executives and Chief Financial Officers of non-compliant institutions may be held personally accountable for these regulatory breaches.
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