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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:The autonomy of the Bank of Zambia and Finance Bank Zambia Limited
Author:Chilufya, BwalyaISNI
Periodical:Zambia Law Journal (ISSN 1027-7862)
Geographic term:Zambia
Subjects:central banks
banking law
Abstract:This article discusses the history of banking in Zambia, general principles of banking regulation and supervision, and the position and autonomy of the Central Bank in Zambia (the Bank of Zambia). It provides a legal analysis of the action taken in relation to Finance Bank of Zambia Limited. The Central Bank took possession of Finance Bank on 10 December 2010, but announced in a press release dated 7 October 2011 that it had returned Finance Bank to its original shareholders and that Finance Bank would continue with its operations as normal. This was in line with the State president's orders. The author shows that the legal framework governing banking in Zambia stipulates prudential regulations, but that these regulations are rendered ineffective by political interference. Political interference undermines the power of the Central Bank and compromises its capacity to prevent system risk in the banking industry and to increase public confidence in the banking sector. In order to shield the Central Bank against such interference, the author recommends that its powers be strengthened. Notes, ref. [ASC Leiden abstract]