Bank of Zambia Act, 1996
- Commenced on 12 December 1996
- [This is the version of this document as it was at 31 December 1996 to 30 January 1998.]
Part I – Preliminary
1. Short titleThis Act may be cited as the Bank of Zambia Act.
2. InterpretationIn this Act, unless the context otherwise requires—"Bank" means the Bank of Zambia established under section three;"bank" shall have the meaning assigned to it in the Banking and Financial Services Act;[Cap. 387]"banking business" shall have the meaning assigned to it in the Banking and Financial Services Act;[Cap. 387]"Board" means the Board of Directors of the Bank established under section twelve;"Deputy Governor" means the Deputy Governor of the Bank appointed under section eleven;"financial institution" shall have the meaning assigned to it in the Banking and Financial Services Act;[Cap. 387]"financial service" shall have the meaning assigned to it in the Banking and Financial Services Act;[Cap. 387]"fine units" shall have the meaning assigned to it in the Fees and Fines Act;[Cap. 45]"Governor" means the Governor of the Bank appointed under section ten;"Ordinary revenue of the Government" means revenue from taxes, levies, royalties, fees, duties, rents, profits and income from any investment or any undertaking by the Government, its institutions and agencies, statutory bodies and local authorities, but does not include any funds raised by way of borrowing, grants in cash or in kind, or any other form of economic assistance.
Part II – Bank of Zambia
3. Establishment of Bank
4. Functions of Bank
5. Powers of MinisterThe Minister may convey to the Governor such general or particular Government policies as may affect the conduct of the affairs of the Bank and the Bank shall implement or give effect to such policies.
7. Profit and loss
8. General reserve fund and other funds
9. Policy statement
Part III – Administration
11. Deputy Governor
12. Board of Directors
13. Composition of Board
14. Tenure of office
16. Proceedings of Board
17. Seal of Bank
18. Committees of Board
19. Immunity of DirectorsNo action or other proceedings shall lie or be instituted against any director for or in respect of any act or thing done or omitted to be done in good faith in the exercise or purported exercise of such director's functions under this Act.
20. Conflict of interest and disclosure of interest
21. Staff of Bank
22. Oath or declaration of secrecy
23. Prohibition of publication of or disclosure of information to unauthorised persons
24. Financial yearThe financial year of the Bank shall be the period of twelve months ending on 31st December in each year.
25. Books of account
26. Audit of accountsThe accounts of the Bank shall be audited annually by an auditor appointed by the Board.
27. Annual report
28. Reports on monthly assets and liabilities
Part IV – Monetary units, notes and coins
29. Currency of the Republic
30. Right to issue currency
31. Denominations of notes and coins
32. Minting and issueThe Bank shall have all such powers and make all such arrangements as may be necessary for the printing of notes, the minting of coins and for the issue, re-issue, exchange and destruction of notes and coins; and for the safeguarding thereof.
33. Legal tender
34. Powers of recall
35. Exchange of notes or coinsSubject to section thirty-six, the Bank shall exchange, on demand and without charge, any notes or coins, which the Bank has issued, for notes or coins of equivalent value and of such denomination as may be requested by any person or agent surrendering such notes or coins in accordance with section thirty-four:Provided that in the event of the denomination being requested, not being available, the Bank may deliver notes and coins of the nearest denomination available.
36. Lost and mutilated notes and coins
37. Counterfeit of notes and coins
38. Penalty for mutilation of currency
Part V – International reserve, and foreign exchange operations
39. International reserves
40. Operations in gold and foreign exchange
Part VI – Relations with banks and financial institutions
41. Minimum liquidity ratios and reserve requirements
42. Accounts for banks and other financial institutions
43. Bank rates for discounts, rediscounts and advances
44. Clearing facilitiesThe Bank may, in conjunction with other financial institutions, organise facilities for the clearing of their cheques and other instruments for effecting payments; and for this purpose organise a clearing system in Lusaka and elsewhere:Provided that only commercial banks at the discretion of the Bank may be permitted to maintain settlement accounts with the Bank.
Part VII – Relations with Government
45. Banker, fiscal agent and adviser to the GovernmentThe Bank shall—
46. Depository of Government funds
47. Management of Government loansThe Bank shall, on such terms and conditions as the Minister may determine, issue and manage Government loans or loans guaranteed by the Government which form a public issue.
48. Agency functionsThe Bank shall act as agent for the Government for such purposes and on such terms and conditions as the Minister may determine.
49. Advances to GovernmentThe Bank shall not advance funds to the Government except in special circumstances and on such terms and conditions as may be agreed upon between the Bank and the Minister.
50. Limitations on lending to Government
51. Depository and fiscal agency for international financial organisationsIn respect of any dealings with any international financial organisation of which Zambia is a member, the Minister may designate the Bank to be the depository of any funds and the fiscal agency through which such dealings shall be conducted.
52. Transaction with Government securitiesThe Bank may underwrite, purchase, sell or deal in securities issued or guaranteed by the Government which form part of a public issue.
Part IX – General
53. Prohibited businessExcept as otherwise expressly authorised by this Act, the Bank shall not—
54. Right to call information
55. InspectionThe Bank shall carry out, periodically or at such times as the Bank may consider necessary, an inspection of any bank or financial institution in accordance with the provisions of the Banking and Financial Services Act.[Cap. 387]
56. Exemption from taxes, etc.
58. PropertyThe Bank may construct, purchase or lease or otherwise acquire for the conduct of its business or, for the residence of its staff, property and may manage, insure, sell, lease or otherwise dispose of that property.
59. Restriction on execution against property and assets of the BankNotwithstanding anything to the contrary contained in any written law, where any judgement or order has been obtained against the Bank, no execution or attachment, or process in the nature thereof, shall be issued against the Bank or against any property or asset of the Bank; but the Bank shall cause to be paid such amounts as may, by the judgement or order, be awarded against the Bank to the person entitled thereto.
60. Fees and recovery of expensesThe Bank may charge fees and recover expences incurred in the carrying out of its duties or operations under this Act.
61. Exemption from Banking and Financial Services ActThe Bank shall not be subject to the Banking and Financial Services Act except in so far as that Act imposes a duty on the Bank.[Cap. 387]
63. Repeal of Act No. 24 of 1985
|Bank of Zambia (Foreign Currency) (Revocation) Regulations, 2003||Statutory Instrument 37 of 2003|
Cited documents 0
Documents citing this one 7
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