BANK OF ZAMBIA

OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

17 January 2002

CB Circular No. 02 /2002

To: All Commercial Banks

SUPERVISORY FEES

By notice of this Circular, you are hereby informed that CB Circular No. 3/98, dated 5 May, 1998 on the Bank of Zambia (Payment of Supervisory Fees) Directives, 1998 has been withdrawn.

This has been replaced by the Bank of Zambia (Payment of Supervisory Fees) Directive, 2002.

Dr Abraham Mwenda
Deputy Governor – Operations

Attd.

Bank Square, Cairo Road, P.O Box 30080, Lusaka 10101, Zambia Tel: 260-1-226844, Fax: 260-1-237070, email: amwenda@boz.zm

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Bank of Zambia (Supervisory Fees) Directives, 2002

IN EXERCISE of the powers contained in sections sixty and fifty-five of the Bank of Zambia Act, No. 43 of 1996, the following Directive, which takes effect on 1 January 2002 is hereby made:

Title

1. This directive may be cited as the Bank of Zambia (Supervisory Fees) Directive, 2002.

Interpretation

2. In this Directive, unless the context otherwise requires;
   • “Bank” means the Bank of Zambia;
   • “Act” means the Bank of Zambia Act, No. 43 of 1996;
   • “Supervisory fees” means amounts charged by the Bank of Zambia in order to offset or recover expenses incurred by the Bank in carrying out its supervisory responsibilities under the Act.

Application

3. This Directive shall apply to all banks licensed under the Banking and Financial Services Act of 1994 as amended.

Minimum Assessment

4. Each bank licensed under the Banking and Financial Services Act 1994 as amended shall pay a minimum assessment of K10 million per annum or such other amount as may be prescribed by the Bank of Zambia from time to time.

Method of Assessment

5. An assessment for each bank shall be computed by determining the average monthly deposits of the bank in the preceding year. Such average shall be a simple 12 months average for the period immediately preceding the date of determination of the fees, multiplied by 0.2% to arrive at the appropriate fee.

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Manner of Payment

6. Supervisory fees shall be paid upon receipt of a fee note and such payment shall be by certified cheque, by debit to an account held by the Bank of Zambia, or by postal order or money order made out in favour of the Bank of Zambia.

7. A bank which fails to pay the full amount of the supervisory fees within the period allowed for payment thereof shall, in addition to such fees, pay for each month or part of a month during which the supervisory fees remain unpaid, a penalty calculated at the current 28 days treasury bill rate on the amount of the supervisory fees outstanding and reckoned from the final date allowed for the payment of such supervisory fees.

General

8. All fees and penalties collected under this Directive shall accrue for the benefit of the Bank of Zambia.