THE Bankers Association of Zambia (BAZ) says commercial banks will earn less income due to the increase in the minimum Statutory Reserve Ratio. BAZ Chief Executive Officer Leonard Mwanza says this is because banks will be required to deposit additional funds with the Central Bank as per regulation, instead of earning interest from it. On Monday, the Bank of Zambia announced that the minimum Statutory Reserve Ratio will be increased by three percentage points to 14.5 percent from 11.5 percent with effect from Monday, November 13. In a circular issued to all heads of commercial banks, BoZ disclosed that the minimum statutory reserve ratio would be increased on both local and foreign currency deposits, including Government deposits and vostro accounts...

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