Regulatory Alerts2025-01-01
Banking and Financial Services (Capital Adequacy) Rules, 2025
The Government of Zambia issued the Banking and Financial Services (Capital Adequacy) Rules, 2025 to establish stringent minimum capital, leverage, and buffer requirements for all licensed banks and financial institutions. The regulations mandate tiered paid-up capital thresholds based on citizen ownership, require institutions to maintain common equity tier one, additional tier one, and secondary capital against risk-weighted assets, and enforce a six percent leverage ratio. Additionally, the rules impose a three percent capital conservation buffer, a variable countercyclical buffer, strict regulatory adjustments for capital computation, and comprehensive public disclosure and compliance reporting obligations.
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