Regulatory Alerts2025-01-01
Banking and Financial Services (Insider Lending) Rules 2025
The Bank of Zambia has issued the Banking and Financial Services (Insider Lending) Rules 2025 to regulate credit facilities extended by financial institutions to insiders. The regulations mandate prior board approval, arm’s length pricing, robust credit risk mitigation, and strict aggregate lending limits of ten percent per insider and one hundred percent across all insiders. Non-compliance triggers mandatory reporting, administrative penalties of up to two hundred thousand penalty units per day, and targeted supervisory interventions including capital deductions and bonus prohibitions.
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