Regulatory Alerts2024-01-01
CB Circular No. 11 - Government Securities as an Additional Asset for Minimum Reserve Requirements
The Bank of Zambia has designated government securities as an additional asset class to help commercial banks meet their 26% minimum statutory reserve requirement, effective June 3, 2024. Commercial banks may allocate up to 40% of their statutory reserve obligation toward eligible bonds, with electronic bids due via the Central Securities Depository by 14:00 on June 6, 2024. This measure provides compliance flexibility and moderates intermediation costs by allowing bonds purchased in the designated auction to count toward reserve obligations based on face value.
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