Regulatory Alerts2014-01-01
Bank of Zambia Circular 13/2014 on Government and Vostro Account Deposits in Statutory Reserve Computation
The Bank of Zambia mandates all commercial banks to include Kwacha and foreign currency government deposits alongside Vostro account balances in statutory reserve calculations at the prevailing 14 percent rate. Effective June 9, 2014, these institutions must also transition to daily compliance for their Statutory Reserve Ratio following the re-introduction of this monitoring framework. The central bank will continuously track macroeconomic developments and implement further adjustments as necessary to maintain financial stability.
BANK OF ZAMBIA OFFICE OF THE DEPUTY GOVERNOR - ADMINISTRATION
May 30, 2014
CB Circular No : 13/2014
To : All Heads of Commercial Banks
INCLUSION OF GOVERNMENT DEPOSITS AND VOSTRO ACCOUNT DEPOSITS IN THE COMPUTATION OF STATUTORY RESERVES AND RE-INTRODUCTION OF DAILY COMPLIANCE ON STATUTORY RESERVES RATIO
The Bank of Zambia wishes to advise all commercial banks that with effect from Monday 9 June 2014, Kwacha and Foreign Currency Government Deposits and Vostro Account Deposits will be subject to Statutory Reserves at the prevailing rate of 14%.
Further, effective Wednesday 9 June 2014, all commercial banks will now be required to comply on a daily basis with respect to the Statutory Reserve Ratio.
The Bank of Zambia will continue to monitor developments in the macroeconomic environment and stands ready to take appropriate measures as and when deemed necessary.
(Signature) Dr. Tukiya Kankasa-Mabula DEPUTY GOVERNOR – ADMINISTRATION
cc Governor