Regulatory Alerts2023-01-01
Reversal of Prudential Relief Measures Introduced During the COVID-19 Pandemic
The Bank of Zambia has directed all financial service providers to fully unwind three specific prudential relief measures originally introduced during the COVID-19 pandemic. Effective December 31, 2023, institutions must resume standard classification and provisioning for restructured credit facilities, secure prior regulatory approval before utilizing collateral for loan loss allowances, and comply with standard capital instrument requirements for non-bank entities. These changes restore pre-pandemic regulatory frameworks to align with the reduced prevalence of COVID-19 and ensure consistent risk assessment across the financial sector.
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