Region

Jurisdiction

Regulator

1998-01-01

Bank of Zambia Circular 1/1998: Submission of Prudential Returns

The Bank of Zambia mandates all licensed financial institutions to submit amended prudential returns, including updated balance sheet and income statement formats, effective 31 January 1998. The circular requires cumulative calendar-year income statements and specifies filing frequencies ranging from monthly to annually for fourteen distinct regulatory schedules, with CEO and Chief Accounting Officer certification of accuracy. A daily penalty of K100,000 is imposed for late or incorrect submissions, and institutions must direct completed returns to the Financial System Supervision Department.

Zambia

Bank of Zambia

# BANK OF ZAMBIA

Tel: 228888 / 228903-20

21 January 1998

CB Circular No. 1/98

P.O. Box 30080 Lusaka  
10101

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**TO** : ALL BANKS AND FINANCIAL INSTITUTIONS  
**SUBJECT** : SUBMISSION OF PRUDENTIAL RETURNS

In accordance with the Banking and Financial Services Act of 1994, and by notice of this circular, the Bank of Zambia hereby notifies that the format prescribed for the balance sheet and the income statement has been amended, and effective 31 January 1998 all such Prudential Returns submitted to the Bank of Zambia shall comply with this notification. It is further notified that, in accordance with the Banking and Financial Services Act of 1994, all financial institutions licenced and operating under this Act are also required to comply with the submission of Prudential Returns. Duly completed Prudential Returns relating to each calendar period of operation, as may be prescribed for each return from time to time, by the Bank of Zambia, shall be submitted to the Financial System Supervision Department.

A penalty of K100,000 per return per day shall be incurred for any delayed submissions or incorrect returns.

Further, for purposes of these Returns, the Income Statement shall be on a cumulative basis, from month to month, and the base month shall be January each year. In other words, regardless of your institution’s financial year end, the Income Statement shall depict incomes earned during a calendar year, i.e. from 1 January to 31 December only.

A schedule of the Prudential Returns and required frequencies for filing is attached. Additionally, copies of these returns are attached and the calendar for submission of the 1998 returns has already been communicated to you via our Circular No. SCH/CB/13/97 dated 29 December 1997. Copies of these returns are also available on Microsoft Excel and can be collected on request.

Furthermore, all Chief Executive Officers and their Chief Accounting Officers are reminded that it is a continuing requirement that all submissions are complete, accurate, timely and consistent.

As always, your utmost cooperation is anticipated. If you require any further clarifications, contact the Director of Financial System Supervision.

Dr A Mwenda  
DEPUTY GOVERNOR, OPERATIONS

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The prudential returns and frequencies of filing shall be as follows:

| Prudential return | Frequency |
|-------------------|-----------|
| 1. Income Statement | Monthly |
| 2. Statement of Assets and Liabilities | Monthly |
| 3. Non-performing Loans | Monthly |
| 4. Large Credit Exposure | Monthly |
| 5. Capital Adequacy | Monthly |
| 6. 20 Largest Depositors | Monthly |
| 7. 20 Largest Loans and Advances | Monthly |
| 8. Insider Loans | Monthly |
| 9. Foreign Exchange exposure | Monthly |
| 10. Risk Weighted Assets | Monthly |
| 11. Money Market Instruments Issued | Monthly |
| 12. Sectoral Classification of Loans and Advances | Biannually |
| 13. Fixed Assets | Biannually |
| 14. Unclaimed funds | Annually |

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## DECLARATION CONCERNING STATUTORY RETURNS AND RELATED SCHEDULES

Reporting institution: _________________________  
Reporting date: _____________________________

We, the undersigned, hereby declare as follows in respect of each of the statutory returns and schedules submitted herewith:

### 1. General
(i) The information contained in the returns and schedules is, to the best of our knowledge and belief, correct; and  
(ii) the returns and schedules have been compiled in accordance with the provisions of the Banking and Financial Services Act 1994 and the regulations relating to banks, and  
(iii) the returns and schedules reflect the management accounts as presented to the management and the Board of Directors of the bank.

### 2. Foreign Exchange Exposure Regulations
The bank has not exceeded, on any day during the reporting month, the limits on its effective net open position(s) in foreign currency as prescribed by Regulations 8 and 9 of the Banking and Financial Services (Foreign Exchange Risk Management and Exposure) Regulations. (If the bank has exceeded the prescribed limits, the declaration shall be qualified, and a statement showing the relevant excess(es), for every day on which an excess existed, shall accompany this return)

### 3. Certification by Chief Accounting Officer and Chief Executive Officer

Signed at _________________________, this __________ day of ______________ 19____

Chief Accounting Officer  
Chief Executive Officer

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## CONSOLIDATED BALANCE SHEET

Reporting institution: _________________________  
Reporting date: _____________________________

| ASSETS | K 'millions |
|--------|-------------|
| **1. NOTES AND COIN** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic currency | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Coin | |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency notes and coin | |
| **2. BALANCES WITH BANK OF ZAMBIA** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory reserves on Kwacha deposits | |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory reserves on foreign currency deposits | |
| &nbsp;&nbsp;&nbsp;&nbsp;Current account | |
| &nbsp;&nbsp;&nbsp;&nbsp;Open market operations (OMO) deposits | |
| &nbsp;&nbsp;&nbsp;&nbsp;Clearing house - collateral deposit | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | |
| **3. BALANCES WITH BANKS AND OTHER FINANCIAL INSTITUTIONS IN ZAMBIA** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Banks | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial institutions | |
| &nbsp;&nbsp;&nbsp;&nbsp;Items in transit | |
| **4. BALANCES WITH BANKS AND OTHER FINANCIAL INSTITUTIONS ABROAD** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliated banks | |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-affiliated banks | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial institutions | |
| **5. INVESTMENTS IN SECURITIES (Schedules 1 and 1A)** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Issued or guaranteed by the Government of Zambia | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury bills | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government bonds | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory bonds | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other bonds | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | |

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| **6. LOANS AND ADVANCES** - net of capitalised interest on non-performing loans (Schedule 2) | |
|---|---|
| &nbsp;&nbsp;&nbsp;&nbsp;**ALLOWANCE FOR LOAN LOSSES** - general and specific (Schedule 3) | |
| **7. BILLS OF EXCHANGE** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Customers' liability under acceptances (as per contra) | |
| **8. INTERBRANCH (Schedule 10)** | |
| **9. FIXED ASSETS** | |
| &nbsp;&nbsp;&nbsp;&nbsp;(net of accumulated depreciation) | |
| **10. OTHER ASSETS** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid and deferred charges | |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill and other intangibles | |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes | |
| &nbsp;&nbsp;&nbsp;&nbsp;Repossessed properties (Schedule 9) | |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities held under repurchase agreement | |
| &nbsp;&nbsp;&nbsp;&nbsp;All other | |
| **11. TOTAL ASSETS (Note 1 below)** | |

**NOTE 1:**  
State below, on a per currency basis, the rates used in converting foreign denominated assets and liabilities.

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| LIABILITIES AND SHAREHOLDERS' EQUITY | K 'millions |
|--------------------------------------|-------------|
| **12. DEPOSITS (Schedules 11 and 11A)** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Demand | |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | |
| &nbsp;&nbsp;&nbsp;&nbsp;Time | |
| **13. BALANCES DUE TO BANK OF ZAMBIA** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Current account | |
| &nbsp;&nbsp;&nbsp;&nbsp;Open market operations (OMO) loans | |
| &nbsp;&nbsp;&nbsp;&nbsp;Refinancing credit | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | |
| **14. BALANCES DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS IN ZAMBIA** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Banks | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial institutions | |
| &nbsp;&nbsp;&nbsp;&nbsp;Items in transit | |
| **15. BALANCES DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS ABROAD** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliated banks | |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-affiliated banks | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial institutions | |
| **16. BILLS OF EXCHANGE** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Customers' liability under acceptances (as per contra) | |
| **17. INTERBRANCH (Schedule 10)** | |
| **18. OTHER LIABILITIES** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes | |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income | |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend payable | |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities held under repurchase agreement | |
| &nbsp;&nbsp;&nbsp;&nbsp;All other | |
| **19. OTHER BORROWED FUNDS** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Maturing in less than 1 year | |
| &nbsp;&nbsp;&nbsp;&nbsp;Maturing in 1 year or more | |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt | |
| &nbsp;&nbsp;&nbsp;&nbsp;Shareholders' loans | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (specify) | |

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| **20. SHAREHOLDERS' EQUITY** | |
|------------------------------|---|
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred shares (Schedule 12) | |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares (Schedule 12) | |
| &nbsp;&nbsp;&nbsp;&nbsp;Share premium (Schedule 12) | |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings (Schedule 13) | |
| &nbsp;&nbsp;&nbsp;&nbsp;Revaluation reserves (Schedule 13) | |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory reserves (Schedule 13) | |
| &nbsp;&nbsp;&nbsp;&nbsp;Other reserves (Schedule 13) | |
| **21. TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (Note 1)** | |
| **22. OFF BALANCE SHEET** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent liabilities | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Guarantees | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Letters of credit | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Assets pledged as collateral security | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Other | |
| &nbsp;&nbsp;&nbsp;&nbsp;Commitments | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Arising out of sale and option to repurchase transactions | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Credit / debit cards | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Foreign exchange and interest rate related contracts | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Other | |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for losses on acceptances and off balance sheet items included in Other Liabilities | |

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## CONSOLIDATED STATEMENT OF INCOME

Reporting institution: _________________________  
Reporting date: _____________________________

(In K 'millions)

| 1. INTEREST INCOME | |
|--------------------|---|
| &nbsp;&nbsp;&nbsp;&nbsp;Loans, advances and overdrafts (excluding leasing income) | |
| &nbsp;&nbsp;&nbsp;&nbsp;From banks and financial institutions | |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury bills | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GRZ bonds | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory bonds | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market instruments | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading securities | |
| &nbsp;&nbsp;&nbsp;&nbsp;Leasing | |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit / debit cards | |
| &nbsp;&nbsp;&nbsp;&nbsp;All other | |
| **TOTAL INTEREST INCOME (excluding dividends)** | |
| 2. INTEREST EXPENSE | |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time certificates of deposits | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other | |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid to banks and financial institutions | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other | |
| **TOTAL INTEREST EXPENSE** | |
| **3. NET INTEREST INCOME** | |
| 4. PROVISION FOR LOAN LOSSES | |
| &nbsp;&nbsp;&nbsp;&nbsp;General | |
| &nbsp;&nbsp;&nbsp;&nbsp;Specific | |
| **TOTAL PROVISION FOR LOAN LOSSES** | |
| **5. NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES** | |
| 6. NON-INTEREST INCOME | |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions, fees and service charges | |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees from f/x transactions | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realised trading gains (losses) | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealised trading gains (losses) from foreign exchange holdings | |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income | |
| &nbsp;&nbsp;&nbsp;&nbsp;All other | |
| **TOTAL NON-INTEREST INCOME** | |
| **7. NET INTEREST AND OTHER INCOME** | |