Regulatory Alerts2020-01-01
Revision to Operating Rules and Guidelines for Overnight Lending Facility
The Bank of Zambia has revised Rule 4.5 of its Overnight Lending Facility operating guidelines to modify margin retention procedures during commercial bank defaults. Under the updated rule, forfeited securities are valued at their current market price rather than including haircuts, triggering either the return of excess collateral or a request for additional securities depending on whether market value exceeds or falls short of the loan amount plus interest. These adjustments apply immediately to all commercial banks participating in open market operations and the Overnight Lending Facility.
Share