The regulation of commercial banks in Zambia and their role in development
This work analyses the regulation of commercial banks in Zambia and its impact on the role that these institutions are playing in national development. The background to this analysis is -the conviction that as these institutions control enormous amounts of resources, or are capable of doing so, then they need certain incentives to make them available for investment. These institutions are not using their own money. Such incentives or inducements therefore must ensure that those resources are safely invested. The incentives envisaged include regulations both of the institutions themselves as well as the economic system. It is these aspects that this work examines. The work is divided into six basic chapters. The first chapter is the introduction which makes the case for a role to be played by commercial banks in development, under proper regulation. The second chapter gives a historical origin of banks in Zambia, including the circumstances of existing commercial banks. Chapter three deals with the regulations affecting commercial banking. This is basically an outline of the various statutes enacted in the country since the colonial days. Chapter four makes the case for the actual relevance or need for commercial bank involvement in Zambia's economic development. It sketches out the historical shortage of resources in investment. Chapter five deals with the actual role played by banks in Zambia's development, while chapter six appraises the effect of the regulations on that performance. The seventh chapter is a summary of the study and the conclusions reached. The law is stated as it stood in 1985, although recent developments and laws known to the author are included.