Regulatory Alerts2006-01-01
Banking and Financial Services (Microfinance) Regulations, 2006
Issued by the Government of Zambia under the Banking and Financial Services Act, these regulations establish a comprehensive licensing and supervisory framework for microfinance institutions overseen by the Bank of Zambia. The rules classify institutions into deposit-taking and non-deposit-taking categories, mandate minimum capital requirements, enforce strict governance standards including fit-and-proper directorship, and restrict unauthorized lending and branch operations. Licensed entities must maintain internal controls, disclose borrowing costs, submit regular returns, and face revocation or criminal penalties for non-compliance, while existing institutions are granted a two-year transition period to meet the new capital thresholds.
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