Regulatory Alerts2017-01-01
Implementation of IFRS 9 Financial Instruments by Financial Service Providers
The Bank of Zambia mandates all financial service providers to implement IFRS 9 starting January 1, 2018, replacing the existing incurred loss model with an expected credit loss framework that increases loan loss provisions. To mitigate capital impact, the regulator grants a three-year straight-line amortization period for the transitional adjustment amount and deferred tax assets, ensuring minimum regulatory capital requirements are maintained. Financial service providers must align risk management systems and establish robust internal controls to ensure full compliance with the new accounting and reporting obligations.
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