Regulatory Alerts2015-01-01
Bank of Zambia Circular No. 2/2015 on the New Capital Adequacy Framework for Non-Bank Financial Institutions
The Bank of Zambia issued Circular No. 2/2015 to correct terminology in its January 2014 capital adequacy framework for non-bank financial institutions. The directive replaces the previously used terms "minimum paid up capital" and "minimum primary paid-up capital" with the standardized term "minimum primary capital." All regulated non-bank financial institutions must apply this corrected terminology to ensure accurate compliance with the revised regulatory requirements.
[Logo: Bank of Zambia]
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/nbfis/bp
September 17, 2015
NBFI Circular No. : 02/2015
To : All Non-Bank Financial Institutions
NEW CAPITAL ADEQUACY FRAMEWORK FOR NON-BANK FINANCIAL INSTITUTIONS
Reference is made to NBFI Circular No. 01/2014 issued on January 9, 2014 through which the Bank of Zambia reviewed the capital adequacy framework for non-bank financial institutions. However, NBFI Circular No. 01/2014 erroneously referred to revising the ‘minimum paid up capital’ and ‘minimum primary paid-up capital’ instead of minimum primary capital.
In this regard, the Bank of Zambia wishes to advise that any reference in that Circular made to the terms ‘minimum paid up capital’ and ‘minimum primary paid-up capital’ has been deleted and replaced with the words ‘minimum primary capital.’
For any clarification relating to this Circular, you may contact:
The Director Non-Bank Financial Institutions Supervision Department Bank of Zambia P O Box 30080 Bank Square Cairo Road LUSAKA
Kindly be advised accordingly.
[Signature]
Bwalya K. E. Ng’andu (Dr) DEPUTY GOVERNOR – OPERATIONS