Regulatory Alerts1996-01-01
CB Circular 03/1996: Capital Adequacy Requirements
The Bank of Zambia issued Circular 03/1996 to clarify capital adequacy requirements and calculation methodologies for commercial banks operating in Zambia. The directive mandates a minimum K2 billion unimpaired tier 1 paid-up capital for new banks prior to licensing, while requiring existing institutions to reach K1.25 billion by June 30 and K2.0 billion by December 31, 1996. Banks must maintain these capitalization levels continuously, deduct adequate provisions for non-performing loans from gross capital, and immediately inject additional funds if they fall below the mandated thresholds or capital ratios.
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