BOZ TO RAISE BANKS’ CAPITAL REQUIREMENT
Bank of Zambia Governor Denny Kalyalya says the capital requirements for commercial banks will be adjusted upwards to secure people’s deposits.
A capital requirement, also known as capital adequacy, is the amount of capital a bank or a financial institution should have, as required by its regulator.
The minimum capital requirement for locally-owned banks currently stands at K104 million and K520 million for foreign owned banks.
Speaking at a media briefing last week, Dr Kalyalya said the capital requirements were last revised in 2012, but that they will soon be adjusted upwards.
“The capital requirements were revised in 2012. We are working on raising that so that we can have a buffer,” he said.
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(Picture credit: World Bank)
It is actually $10 million for local banks and $100m for foreign banks. Those amount are actually as at 2012 kwacha / dollar exchange rate.