Regulatory Alerts1996-01-01
Banking and Financial Services (Capital and Money Market Instruments) Guideline, 1996
The Bank of Zambia issued Guideline No. 1/96 to regulate the issuance of Money Market Instruments and prevent financial institutions from circumventing deposit-taking restrictions and liquidity requirements under the Banking and Financial Services Act. The guideline mandates that all funds raised through such instruments be classified as public deposits, caps public issuance at four times a firm's primary capital, and requires full asset-backed security via a floating charge. Institutions must obtain prior regulatory consent, maintain detailed holder registers, submit monthly compliance reports, and suspend new issuances until all statutory conditions are satisfied.
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