Regulatory Alerts2025-01-01
Banking and Financial Services (Deposit Protection) Directives 2025
The Bank of Zambia has issued the Banking and Financial Services (Deposit Protection) Directives 2025 to establish a mandatory Deposit Protection Scheme and Fund for all licensed banks and financial institutions. The Directives require member institutions to pay initial, annual, and risk-based premiums while defining a K150,000 coverage limit for protected deposits and explicitly excluding secured or inter-institutional funds. Upon institutional failure, the Bank will administer reimbursement claims within thirty days, exercise subrogation rights to recover paid amounts, and enforce compliance through administrative sanctions and penalties for non-compliance.
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