Banking
ZAMBIA BANKING SECTOR KEY FIGURES 2025, ASSETS, CAPITAL, NPLs
| Share of Financial Sector Assets | Share of GDP | Regulatory Capital | Non-Performing Loans |
|---|---|---|---|
| 60.9% | 41.8% | 23.6% | 2.7% |
Zambia’s commercial banks accounted for 60.9% of total financial sector assets as of December 2025, or 41.8% of GDP, and carried total regulatory capital equal to 23.6% of risk-weighted assets with a non-performing loans ratio at a multi-decade low of 2.7%.
International banks including Citibank, Bank of China, Absa, Stanbic, Ecobank and United Bank for Africa operate alongside domestic institutions, offering corporate, trade and digital banking services across the market.
Financial System Structure
Total assets held by Zambia’s financial institutions exceeded ZMW 490.5 billion as of December 2025, equivalent to 68.5% of GDP[1]. Commercial banks dominated that total, accounting for 60.9% of financial sector assets and 41.8% of GDP, playing the central role in formal financial intermediation, transferring funds from depositors to borrowers, facilitating payments, and offering risk management products such as derivatives and bancassurance[1].
Capital and Asset Quality
Bank-wide total regulatory capital stood 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%[1]. The Bank of Zambia attributes the improvement to banks maintaining adequate buffers of high-quality capital alongside easing default risk amid improving macroeconomic conditions[1].
Deposit Insurance
The Bank of Zambia has introduced a deposit insurance scheme covering licensed banks, administered through a Deposit Insurance Fund whose coverage parameters the Bank can adjust as the fund matures[2].
Investment Opportunities
A sector with capital levels well above the regulatory minimum and non-performing loans at a multi-decade low is a sector positioned to lend, giving room for new entrants and existing banks alike to expand credit into productive sectors rather than defend balance sheets[1].
Last Update: August 2026
