Regulatory Alerts2026-01-01
Bank of Zambia Banking and Financial Services (Liquidity Coverage Ratio) Directives, 2026
The Bank of Zambia issued the Banking and Financial Services (Liquidity Coverage Ratio) Directives, 2026, mandating commercial banks to maintain a minimum liquidity coverage ratio of 20 percent, with annual incremental increases of 20 percentage points until reaching 100 percent by 2030. The directives require banks to hold sufficient unencumbered High-Quality Liquid Assets to cover total net cash outflows during a 30-day stress scenario and integrate these metrics into their liquidity risk management and governance frameworks. Monthly reporting of the LCR will commence on July 1, 2026, with the central bank utilizing these submissions for ongoing supervisory assessments of liquidity risk.
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