Regulatory Alerts2005-08-08
Added · Updated
Treatment of Zambian and Foreign Public Holidays in Statutory Reserves and Core Liquid Asset Computation
The Bank of Zambia mandates that Zambian and foreign public holidays be fully included within the seven-day compliance period for calculating statutory reserves and core liquid asset requirements. This directive establishes a continuous Monday-through-Sunday assessment window, ensuring that holiday-related fluctuations do not disrupt regulatory calculations. Accordingly, penalty assessments for non-compliance are applied to the net shortfall measured over this complete holiday-inclusive timeframe.
BANK OF ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
August 8, 2005
CB Circular No: 06/2005
To: All Commercial Banks
TREATMENT OF ZAMBIAN AND FOREIGN COUNTRIES’ PUBLIC HOLIDAYS IN THE COMPUTATION OF STATUTORY RESERVES AND CORE LIQUID ASSETS REQUIREMENTS
The Bank of Zambia has on numerous occasions received queries on the treatment of both Zambian and foreign countries’ public holidays in the computation of statutory reserves and core liquid asset requirements.
We hereby wish to clarify that the compliance period for statutory reserves and core liquid assets requirements is 7 days, that is, Monday through to Sunday and include all Zambian and foreign countries’ public holidays. Accordingly, penalties are applied on the net shortfall taking into account the 7-day compliance period.
We hope this helps to clarify the aforementioned matter.
Denny H Kalyalya (Dr)
DEPUTY GOVERNOR - OPERATIONS
Bank Square, Cairo Road P. O. Box 30080, Lusaka, Zambia
Tel: +260-1-226844 Fax: +260-1-237070 Email: dkalyaly@boz.zm Web: http://www.boz.zm/
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