Regulatory Alerts2008-10-20
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CB Circular 10/2008 Restructuring of the Re-discount Window
The Bank of Zambia issued Circular 10/2008 to immediately reduce the Price Penalty for rediscounting Treasury bills exceeding 10 percent of regulatory capital from 7 percent to 3.5 percent. This directive applies to all commercial banks and specifically targets the penalty rate for amounts above the established threshold. Charges for rediscounting Treasury bills within the 10 percent of regulatory capital limit remain unchanged at 0.64 percent, 0.73 percent, and 0.84 percent on price, income, and cost respectively.
BANK OF ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
October 20, 2008
CB Circular No: 10/2008
To: All Commercial Banks
RESTRUCTURING OF THE REDISCOUNT WINDOW
All commercial banks are hereby advised that the Bank of Zambia has with immediate effect reduced the Price Penalty for rediscounting Treasury bills above the current threshold of 10 percent of regulatory capital from 7 percent to 3.5 percent.
All the other charges when rediscounting Treasury bills within the 10 percent of regulatory capital remain unchanged. These charges are 0.64%, 0.73% and 0.84% on price, income and cost, respectively.
Denny H. Kalyalya (Dr.)
Cc Governor
Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: +260 -211- 226844 Fax: +260 -211- 2370701 E-mail: dkalyaly@boz.zm http://www.boz.zm
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