Regulatory Alerts2007-01-01
Implementation of Basel II in Zambia
The Bank of Zambia mandates all commercial banks to implement the Basel II capital adequacy framework, which replaces the 1988 Capital Accord with a three-pillar structure covering minimum capital charges, supervisory risk assessment, and market disclosures. To accommodate local resource constraints, regulators will initially adopt simplified calculation methods for credit, market, and operational risks while progressively introducing advanced approaches. Banks must appoint a senior officer as a Basel II coordinator, submit their particulars to the Bank Supervision Department by June 30, 2007, and participate in a newly established joint implementation liaison committee.
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