Regulatory Alerts2004-01-01
CB Circular 05/2004: Shortfalls on Statutory Reserve and Core Liquid Asset Ratios
The Bank of Zambia has revised the calculation and penalty framework for commercial banks’ shortfalls on statutory reserve and core liquid asset ratios. Instead of applying differentiated penalty rates to segmented shortfall amounts, the regulator will now apply the standard Bank of Zambia Penalty Rate exclusively to the net combined shortfall position during each compliance period. This adjustment is designed to lower compliance costs for commercial banks and facilitate the pass-through of savings to their customers.
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