BOZ
BANK OF ZAMBIA KEY FIGURES
| Governing Act | Monetary Policy Rate | Inflation Target Band | Bank Regulatory Capital |
|---|---|---|---|
| Bank of Zambia Act No. 5 of 2022 | 13.25% | 6-8% | 23.6% of RWA |
The Bank of Zambia derives its functions and powers from the Bank of Zambia Act No. 5 of 2022, and its Monetary Policy Committee cut the Monetary Policy Rate by 25 basis points to 13.25% at its May 2026 meeting, as inflation eased back within the Bank’s 6-8% target band.
The Bank licenses, regulates and supervises commercial banks and non-bank financial institutions, reports total financial sector assets of ZMW 490.5 billion as of December 2025, and found the banking sector well capitalised at the start of 2026 with regulatory capital at 23.6% of risk-weighted assets.
Mandate and Regulatory Role
The Bank of Zambia derives its functions and powers from the Bank of Zambia Act, No. 5 of 2022, and the Banking and Financial Services Act, and licenses, regulates and supervises commercial banks and non-bank financial institutions operating in the country[1]. Non-bank financial institutions registered in Zambia include credit reference bureaux, development finance institutions, leasing and finance companies, microfinance institutions, and bureaux de change[1]. The Bank has also introduced a deposit insurance scheme covering licensed banks, administered through a Deposit Insurance Fund[2].
Monetary Policy
The Bank of Zambia now projects average inflation of 6.8% for full-year 2026 and 6.1% for 2027, both revised down from its February 2026 forecasts[3]. At its May 11 to 12, 2026 meeting, the Monetary Policy Committee cut the Monetary Policy Rate by 25 basis points to 13.25%, citing the favourable maize harvest outlook and the relative stability of the Kwacha, while flagging the Middle East conflict as an upside risk to prices that warranted a cautious pace of easing[3].
Financial Sector Data
Total assets held by Zambia’s financial institutions exceeded ZMW 490.5 billion as of December 2025, equivalent to 68.5% of GDP, with commercial banks dominating at 60.9% of that total[2]. Zambia’s banking sector held bank-wide total regulatory capital at 23.6% of risk-weighted assets in early 2026, comfortably above the regulatory minimum, while the non-performing loans ratio slid a further 0.8 percentage points to a multi-decade low of 2.7%[2]. The Bank also compiles Zambia’s balance of payments data jointly with the Zambia Statistics Agency and Zambia Development Agency, including the annual Foreign Private Investment and Investor Perceptions survey[4].
Investment Opportunities
The Bank’s own data series, from the quarterly Monetary Policy Report to the annual Financial Stability Report and Foreign Private Investment survey, are the primary official sources for Zambia’s growth, inflation, exchange rate, banking sector and investment data covered throughout this site, and an easing rate cycle alongside a well-capitalised banking sector points toward a lower domestic borrowing cost environment than Zambia has had in several years[2][3].
Last Update: September 2026
