The Bank of Zambia has assured the nation that no bank will close due to the central bank’s decision to hike the minimum capital requirement for banks.
Upon assuming power, the PF government introduced a number of sweeping changes to the banking and financial sector and increased the minimum capital requirements for both local and international banks operating in the country.
Local banks were required to comply with the directive of increasing their basic capital from K12 billion to K104 billion while international banks were required to up their minimum capital to K520 billion.
Some market analysts have said the move has caused panic among banks in Zambia with a few international banks having written to the central bank indicating their difficulties in complying with the December deadline to increase their capital.
But BOZ Deputy Governor Bwalya Ngandu has moved to assure the country that the central bank will not allow any bank to go down.
Dr. Ngandu said the central bank is willing to sit down and dialogue with all the affected banks in order to attain the vision of having an adequately capitalized banking sector.
He stated that having a solid capital base allows banks to increase their risk taking and improves the amount of lending in the economy.
Dr. Ngandu was speaking this morning when he officiated at the official opening of Intermarket Banking Cooperation Soweto Branch in Lusaka.
He commended Intermarket Banking Cooperation for extending banking services to areas such as Soweto Market where he said the real people are found.
Dr. Ngandu however called on banks to lower their interest rates further as a way of encouraging the public to open accounts and borrow for productive purposes.
He said the central bank has observed a gradual reduction in interest rates following the policy changes that the Bank of Zambia introduced early this year.
Dr. Ngandu noted that the reduction of corporate tax for banks from 40% to 35% has helped lower the interest rates but was quick to mention that banks could still do more.
Meanwhile, Intermarket Banking Cooperation Managing Director Robert Nkous revealed that the bank has enjoyed tremendous success since it joined the Afriland First Group in 2008.
Mr. Nkous stated that Intermarket now has over 90 % of its loan book allocated for SME’s in various segments of the economy.
He said Intermarket is also aggressively supporting the government’s rural development programme through rural finance.
Mr. Nkous said the opening of the Soweto branch brings the bank’s total branch network to 7.
He said this follows closely in the opening of the NIPA and Manda Hill branch adding that the bank has sights on opening new branches in Chisokone and Masala markets in Kitwe and Ndola respectively.
The opening of the Soweto branch brings the total number of bank branches in Zambia to 264.
As someone with an MBA, CIMA ACCA and Msc, and Phd soon, I will have to agree with what he is saying, it makes sense
Thanks
Mushota mwanakashi abafula ni ba Mushota mwaume. Kwene ulasabaila mwe.
Upon assuming power, the PF government introduced a number of sweeping changes to the banking and financial sector and increased the minimum capital requirements for both local and international banks operating in the country. SORRY LT, It’s not PF govt that initiated this but rather the BASEL III Accords which is a set of international banking standards from the Basel Committee on Banking and Supervision that “dictates” capital and liquidity requirements. BASEL III is a directive that all Banking/Financial Sectors across the globe will have to comply with by 2019 to avoid a similar financial crisis of 2007-2008 also referred to as CREDIT CRUNCH that affected a lot of people. I give credit to BOZ for implimenting this directive now as it will help protect the people of Zambia.
Am sure they are talking about who implemented it. They didn’t educate the masses about it. Period. At the close of day, when it begins to sting on the streets of Lusaka, where it originated from and for what reason won’t matter. We applaud you for being so knowledgeable about it.
Doesnt lusaka times know about the 25billion oil saga in the last govt , why has it not been reported you mean there is nothing wrong with it
@#1, Mushota; your verbal diarrhea is testament that you may not even have completed the 12th grade. I mean educated people never rant so ignorantly about qualifications. If your so-called white fiancé is not one these crapy bazunguz then your marriage won’t last. Really, you’re such a disaster – yaaba!!
Well, I am learning for the first time that REAL people are found at Soweto. Can the Deputy Governor now tell me where I can find people who are Not Real?
This the 5th time No. 1 has paraded her qualifications. She must have some serious inferiority complex.
It’s Intermarket Banking Corporation – not Cooperation ba LT, understand Company Naming