Regulatory Alerts1996-01-01
Banking and Financial Services (Large Loan Exposures) Regulations, 1996
The Government of Zambia, acting on the recommendation of the Bank of Zambia, issued these regulations to impose strict lending limits on all licensed deposit-taking banks and financial institutions. The rules cap single-person or common enterprise exposures at twenty-five percent of a bank's regulatory capital, restrict aggregate large loan exposures to six hundred percent, and mandate advance board approval for any credit facility exceeding ten percent of capital. Institutions must submit monthly exposure reports to the central bank, phase out pre-existing non-compliant loans within one year, and face substantial fines, imprisonment, or removal from office for directors who violate the provisions.
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