Regulatory Alerts1996-01-01
Bank of Zambia Circular 5/1996: Capital Adequacy Requirements
The Bank of Zambia issued revised capital adequacy calculation schedules to clarify Tier 1 and Tier 2 capital computations for all commercial banks. The directive mandates minimum Tier 1 capital thresholds of K1.250 billion by June 30, 1996, and K2 billion by December 31, 1996. It explicitly requires deductions from gross capital for unbooked provisions, assets with minimal realizable value, unreconciled suspense accounts, and unrealized gains to ensure accurate regulatory reporting.
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