Regulatory Alerts1996-01-01
Banking and Financial Services (Insider Lending) Regulations, 1996
The Government of Zambia issued the Banking and Financial Services (Insider Lending) Regulations, 1996 to restrict and standardize credit extended by licensed banks and financial institutions to insiders, directors, and related parties. The rules require all insider loans to match prevailing market terms, obtain prior board approval with interested parties abstaining, and strictly cap individual insider exposure at ten percent of regulatory capital while limiting aggregate insider exposure to one hundred percent. Institutions must report monthly exposures to the Bank of Zambia, phase out pre-existing non-compliant loans within one year, and face heavy fines, imprisonment, or removal from office for any violations.
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