Regulatory Alerts2007-07-24
Revision to Minimum Start-Up Capital for Banks
The Bank of Zambia issued the Banking and Financial Services (Capital Adequacy) Notice, 2006, which increases the minimum start-up primary paid-up capital for commercial banks from K2 billion to K12 billion effective 2 January 2007. The directive also establishes minimum capital thresholds for development financing institutions, deposit-taking leasing companies, and non-deposit-taking leasing companies, while mandating that all covered entities maintain either the prescribed minimum or 10 percent of risk-weighted assets, whichever is higher. Existing financial institutions failing to meet the updated capital requirements must negotiate with the central bank and achieve full compliance by 30 June 2008.
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