Regulatory Alerts2015-01-01
Bank of Zambia Removes Interest Rate Caps and Introduces Consumer Protection Measures
The Bank of Zambia issued Circular 19/2015, effective November 4, 2015, removing statutory interest rate caps for commercial and non-bank financial institutions. The directive mandates transparent pricing, responsible lending practices, and mandatory disclosure of all borrowing costs to ensure consumer borrowers can make informed decisions. Financial service providers must now secure borrower signatures on a standardized Key Facts Statement, face regulatory reviews for unreasonable fees, and incur statutory sanctions for non-compliance.
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