Regulatory Alerts2023-01-01
Circular 10/2023: Collateral Requirements for Net Settlement Obligations on Payment Systems
The Bank of Zambia has issued Circular 10/2023 to replace previous guidelines and mandate that all clearing house participants pledge cash or Treasury bills to cover net settlement obligations across national payment systems. The required collateral amount is calculated monthly by the Settlement Agent using the higher of a three-month moving average or the previous month's peak daily net debit, with participants required to adjust holdings within seven business days of any review. Failure to maintain adequate collateral triggers daily penalties of up to fifty thousand penalty units and may result in suspension from the payment system.
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