List of banks in Zambia

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This is a list of banks in Zambia .

Financial market in general

In terms of financial volume, Zambia is dominated by four foreign banks that have a sparse but nationwide branch network. The financial sector itself is small. The ratio of the money supply M2 to GNP is 10 percent, that of bank deposits to GNP is 22 percent, with state deposits making up the largest part. In view of the high inflation rates, the investment loans are very short-term and are therefore constantly being renegotiated.

Central bank

Commercial banks

Another private financial sector

  • two real estate funds
  • seven insurance companies
  • nine pension funds

Banking system in Zambia in general

Small company in Zambia

The state banking system was subsidized. When the Zambian government withdrew this support in 1993, a banking crisis followed almost immediately. In 1995, the following banks were closed due to insufficient funding in order not to further undermine confidence in the Zambian banking system:

  • Prudence Bank, Lusaka (in liquidation 1994)
  • Meridien Bank Limited, Lusaka (in liquidation 1995)
  • African Commercial Bank Limited, Lusaka (in liquidation 1995)
  • Commerce Bank Limited, Lusaka (in liquidation 1995)

As a result, the Capital Adequacy Regulation was enacted in 1996 , which stipulates a minimum capital of 2 billion kwacha for all banks. In general, the Zambian banking system is based on the Banking and Financial Services Act of 1994.

However, that did not mean that the crisis was over. It followed:

  • Chase Trust Bank, Lusaka (in liquidation 1997)
  • Prudence Bank, Lusaka (in liquidation 1997)
  • Credit Africa Bank, Lusaka (in liquidation 1997)
  • Manifold Investment Bank, Lusaka (in liquidation 1997)
  • First Merchant Bank, Lusaka (in liquidation 1998)
  • Union Bank, Lusaka (in liquidation 2005)

So far, the Zambian banking system has been almost entirely limited to financing industrial projects. The area of ​​consumer credit has been left to families and loan sharks. That has changed since 2000. In particular, church-related organizations such as the ecumenical development cooperative Oikocredit and projects such as that of Muhammad Yunus with the Grameen Bank in Bangladesh made the development aid organizations aware of the enormous potential of microcredits for the development of a country. This is the first time that the Zambian banking system is expanding, because the monetary imagination of an African smallholder includes a tin roof, a bicycle, artificial fertilizers, and seeds. It is exhausted with $ 1,000 a year. The range of needs rarely goes further. In addition, it takes account of the African custom that anyone who is in debt can ask for money in the family, but whoever has money has to make it available in the family. Microloans are therefore the ideal starting point to encourage investments and to accumulate further capital for them. They only need to be provided at interest rates that do not result in debt bondage. With the Lima Bank and Cavmont Capital Bank in particular and the changed lending not only to the Finance Bank Zambia and the National Savings and Credit Bank of Zambia in general, at least one approach seems to have been found. How far it will carry will only be seen in ten years.

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