ABSTRACT
In setting out the capital adequacy requirements, the Minister of Finance, on the recommendation of the Bank of Zambia and in line with internationally accepted guidelines and the nature of the bank’s business, prescribes the minimum required capital for every class or description of bank.106 As at December 1996, the capital adequacy regulation required commercial banks and all other deposit taking institutions to have a minimum regulatory capital of K2 billion.107 By contrast, non-deposit taking financial institutions were required to have a minimum regulatory capital of up to K250 million.108
