Regulatory Alerts1995-01-01
Banking and Financial Services (Reserve Account) Regulations 1995
Issued by the Government of Zambia under the Banking and Financial Services Act, these regulations mandate all licensed banks and financial institutions to maintain a mandatory reserve fund derived from actual earnings, recoveries, or capital asset realizations. Institutions must transfer at least fifty percent of their current financial year distributable retained earnings to this fund before declaring any dividends whenever the reserve fund remains at or below half of their paid-up equity capital. When the reserve fund exceeds half but falls short of the paid-up equity capital, institutions must instead transfer twenty percent of profits or a sufficient amount to fully match their paid-up equity capital.
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