Regulatory Alerts1996-01-01
Bank of Zambia Circular 06/1996 Corrigendum on Capital Adequacy Requirements
The Bank of Zambia issued a corrigendum to its March 1996 capital adequacy circular to reinstate a previously omitted regulatory clause. The corrected schedule mandates that commercial banks maintain a minimum total capital equal to ten percent of their total on- and off-balance sheet risk-weighted assets or K 2,000 million, whichever amount is higher. This adjustment ensures compliance with the Banking and Financial Services Regulations and clarifies the baseline capital threshold for all licensed commercial banks operating in Zambia.
BANK OF ZAMBIA
P.O. Box 30080 Lusaka
Tel: 228912/228896
21 March 1996
C B Circular No.6/96
TO ALL COMMERCIAL BANKS
Dear Sirs
CORRIGENDUM - CAPITAL ADEQUACY REQUIREMENT
Reference is made to C B circular No. 5/96 dated 5th March 1996. In accordance with the Banking and Financial Services (Capital Adequacy) Regulations, Section V of the computation of capital position schedule attached to the circular should read:
V. MINIMUM TOTAL CAPITAL REQUIREMENT
(10% of total on and off balance sheet risk-weighted assets as established in the First schedule, or K 2,000 million, whichever is higher).
Note that the part making reference to K 2,000 million had been omitted in our earlier circular.
Yours sincerely
S Musokotwane (Dr)
ACTING DEPUTY GOVERNOR
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