adminLUSAKA. — Zambia’s central bank intends to commence the implementation of a globally accepted standard to measure the solvency of commercial banks in the country in order to avoid bank closures, the Times of Zambia reported yesterday.
The Bank of Zambia says it will commence implementation of the Basel II framework next month aimed at contributing to a more resilient and stable banking system.
The Basel II framework is a globally accepted standard by which the banking sector’s solvency is measured. Tukiya Kankasa-Mabula, the central bank’s Deputy Governor for Administration said the implementation of the system will mark a step in the right direction and that it will contribute to a move resilient and stable banking system.
The central bank, she said, was currently undertaking a parallel run test of the system to ensure that commercial banks have full appreciation of the regulation — Xinhua.
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