The Bank of Zambia (BoZ) says the minimum capital requirements for banks that were introduced in 2012 have significantly improved quantity and quality of the country’s banking sector’s regulatory capital.
The current capital requirement for foreign owned banks is K520 while the capital requirement for locally owned banks was set at K104 million.
BoZ Director – Bank Supervision Department Gladys Mposha has disclosed that the overall quantity of the sector’s primary regulatory capital increased by K3.1 billion from K2.6 billion as at end of January 2012 when the measure was announced to K5.7 billion as at the end of March 2014.
Ms. Mposha says in addition, the quality of the sector’s total regulatory capital has improved with paid-up common shares which she says now accounts for the largest component.
Ms. Mposha notes that as at end of March 2014, paid-up common shares has accounted for more than half of the sector’s total regulatory capital at 57.8% compared to only 13.1% as at the end of January 2012.
She says this increase in percentage of the sector’s total regulatory capital represents an increase of K3.2 billion from 0.38 billion as at end of January 2012.
Qfm’s Lazarous Sichula reports that Ms. Mposha was speaking this morning during the three days 15th BoZ media seminar being held in Siavonga, Southern Province.