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

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6. LOANS AND ADVANCES - net of capitalised interest on non-performing loans (Schedule 2)
ALLOWANCE FOR LOAN LOSSES - general and specific (Schedule 3)
7. BILLS OF EXCHANGE
Customers' liability under acceptances (as per contra)
8. INTERBRANCH (Schedule 10)
9. FIXED ASSETS
(net of accumulated depreciation)
10. OTHER ASSETS
Accrued interest receivable
Prepaid and deferred charges
Goodwill and other intangibles
Taxes
Repossessed properties (Schedule 9)
Securities held under repurchase agreement
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)
Demand
Savings
Time
13. BALANCES DUE TO BANK OF ZAMBIA
Current account
Open market operations (OMO) loans
Refinancing credit
Other
14. BALANCES DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS IN ZAMBIA
Banks
Other financial institutions
Items in transit
15. BALANCES DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS ABROAD
Affiliated banks
Non-affiliated banks
Other financial institutions
16. BILLS OF EXCHANGE
Customers' liability under acceptances (as per contra)
17. INTERBRANCH (Schedule 10)
18. OTHER LIABILITIES
Accrued interest payable
Taxes
Deferred income
Dividend payable
Securities held under repurchase agreement
All other
19. OTHER BORROWED FUNDS
Maturing in less than 1 year
Maturing in 1 year or more
Subordinated debt
Shareholders' loans
Other (specify)

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20. SHAREHOLDERS' EQUITY
Preferred shares (Schedule 12)
Common shares (Schedule 12)
Share premium (Schedule 12)
Retained earnings (Schedule 13)
Revaluation reserves (Schedule 13)
Statutory reserves (Schedule 13)
Other reserves (Schedule 13)
21. TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (Note 1)
22. OFF BALANCE SHEET
Contingent liabilities
a) Guarantees
b) Letters of credit
c) Assets pledged as collateral security
d) Other
Commitments
a) Arising out of sale and option to repurchase transactions
b) Credit / debit cards
c) Foreign exchange and interest rate related contracts
d) Other
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
Loans, advances and overdrafts (excluding leasing income)
From banks and financial institutions
Securities
Treasury bills
GRZ bonds
Statutory bonds
Money market instruments
Other securities
Trading securities
Leasing
Credit / debit cards
All other
TOTAL INTEREST INCOME (excluding dividends)
2. INTEREST EXPENSE
Deposits
Demand
Savings
Time certificates of deposits
other
Interest paid to banks and financial institutions
Loans
Deposits
Subordinated debt
All other
TOTAL INTEREST EXPENSE
3. NET INTEREST INCOME
4. PROVISION FOR LOAN LOSSES
General
Specific
TOTAL PROVISION FOR LOAN LOSSES
5. NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
6. NON-INTEREST INCOME
Commissions, fees and service charges
Foreign exchange
Fees from f/x transactions
Realised trading gains (losses)
Unrealised trading gains (losses) from foreign exchange holdings
Dividend income
All other
TOTAL NON-INTEREST INCOME
7. NET INTEREST AND OTHER INCOME