RegAlertRule · BOZ · 22 Feb 2017
Adjustments to the Statutory Reserve Ratio and the Overnight Lending Facility Rate
The Bank of Zambia has reduced the overnight lending facility rate to 600 basis points above the policy rate and lowered the statutory reserve ratio for Kwacha and foreign currency deposits by 2.5 percentage points to 15.5 percent. These adjustments, effective immediately for the lending facility and from 27 February 2017 for reserves, aim to decrease funding costs and stimulate economic credit growth. Commercial banks must comply with the revised ratios while the central bank continues to monitor macroeconomic conditions and stands ready to implement further measures as necessary.
[Logo: Bank of Zambia]
Bank of Zambia
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/fmkts/bp
February 22, 2017
CB Circular No. : 01/2017
To : All Heads of Commercial Banks
ADJUSTMENTS TO THE STATUTORY RESERVE RATIO AND THE OVERNIGHT LENDING FACILITY RATE
Reference is made to CB Circular No. 07/2015 dated 20 March 2015 and CB Circular No. 20/2015 dated 10 November 2015.
Commercial banks are hereby advised of the following changes regarding the statutory reserve ratio and the overnight lending facility (OLF) rate:
Overnight Lending Facility Rate
With immediate effect, the OLF rate has been reduced to 600 basis points above the prevailing Bank of Zambia Policy Rate from 1000 basis points.
Statutory Reserve Ratio
With effect from Monday 27 February 2017, the statutory reserve ratio on both Kwacha and Foreign Currency Deposits including Government Deposits and Vostro Account Deposits will be reduced by 2.5 percentage points to 15.5 percent from 18.0 percent.
These measures are aimed at reducing the cost of funds and promoting credit growth in the economy.
The Bank of Zambia will continue to monitor developments in the macroeconomic environment and stands ready to take appropriate measures as and when deemed necessary.
[Signature]
Bwalya K. E. Ng’andu (Dr)
DEPUTY GOVERNOR – OPERATIONS
Cc: Governor
Bank Square, Cairo Road P. O. Box 30080, Lusaka, Zambia Tel: 260-211-226844, 228888 Fax: 260-211-237070 E-mail:dgo@boz.zm Web: http://www.boz.zm
Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.
Lineage: No known changes
RegAlert holds no document that amends or replaces this one. This is not a check that it is in force: confirm with the regulator.
The links and the sentences they come from (1)
- Amends
“Reference is made to CB Circular No. 07/2015 dated 20 March 2015 and CB Circular No. 20/2015 dated 10 November 2015.”
Mentions (1): 1 document this one mentions without changing it
- Refers to
“Reference is made to CB Circular No. 07/2015 dated 20 March 2015 and CB Circular No. 20/2015 dated 10 November 2015.”
Timeline
This document amends: Bank of Zambia Circular No. 20/2015: Increase in the Overnight Lending Facility Rate
Similar documents from other regulators
CBKBanking Circular No. 1 of 2026 - Changes to CBK Discount (Overnight) Window FacilityKenya · 2026-02-10
BOTRevised Statutory Minimum Reserves CircularTanzania · 2015-05-04
CBEReducing the reserve ratio from 12% to 10%Egypt · 2012-06-11
More like this from BOZ
We email you every new BOZ publication the day it's published.
Source: Bank of Zambia — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
In RegAlert: added · updated