Regulatory Alerts2010-01-01
Revised Framework for Computing Collateral Value for the Zambia Electronic Clearing House Ltd
The Bank of Zambia has issued a revised framework requiring commercial banks participating in the Zambia Electronic Clearing House to compute collateral requirements using a dual-method approach that takes the higher value of a three-month moving average of monthly maximum net settlement debits or the previous month's daily maximum net settlement debits. The circular also restricts eligible collateral to only cash and Treasury Bills, removing government bonds from the approved list, and mandates that banks adjust their collateral holdings within one week of monthly reviews. Non-compliance with these updated requirements will result in daily penalties of up to fifty thousand penalty units and potential suspension from the clearing system.
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