OBJECTIVE

The Banking and Currency department is responsible for providing banking services to the Government, commercial banks and other users and the issuance and management of currency.

FUNCTIONS

The Banking and Currency department serves four critical functions:

• Banker to the Government - maintains accounts, effects transfers, and effects payments on behalf of various Government departments;
• Banker to Commercial Banks - provides financial services to commercial banks including efficient management of cash reserves. This centralisation of cash reserves strengthens the overall banking system in Zambia;
• Settlement Agent - Through the department, the Bank of Zambia acts as a clearing house responsible for facilitating transfers of funds and settlement of payments. This role ensures the efficient and secure flow of cash throughout the economy; and
• Determining and maintaining the national currency stock levels and issuance and distribution of banknotes and coins throughout the country.

The key role of Bank Secretariat Department is to support the Bank' s mission by providing excellent Board secretariat, legal, records, archives, protocol and hospitality services. The Board Secretariat encompasses the following three related yet distinct sets of functions: Secretariat Function; The Secretariat manages the Bank' s corporate secretarial functions and oversees corporate governance practices and practices are in compliance with the Bank of Zambia Act. Communications Function; and Records and Archives Management Function; The Records and Archives Management function oversees the management of records in the Bank in order to support business operations and ensure compliance with legal and business requirements. It also manages Bank of Zambia Archives which is the official repository for the institution' s corporate memory.

Finance Department's main objective is to establish and maintain an effective Accounting and Financial Management service to the Bank of Zambia. The main functions include: (a) To ensure proper maintenance of books of accounts and production of financial statements; (b) To ensure proper budget process and control for the Bank; (c) To ensure maintenance of an efficient payment system for suppliers of goods and services; (d) To provide a back office for Financial Markets Department; (e) To handle foreign exchange receipts and payments on behalf of Government; (f) To ensure maintenance of a proper Payroll System; and (g) To provide Financial advisory services as and when required by the Bank.

The principal purpose of the Financial Market department is to implement the monetary policy of the Bank of Zambia, manage foreign exchange reserves and exchange rates, and to act as a fiscal agent of the Government of the Republic of Zambia through issuance of Government Securities.

OBJECTIVES 

The Non-Bank Financial Institutions Supervision Department (NBFISD) was created in September 2001, to contribute to the promotion of a safe, sound and efficient financial system. 

The principal objectives of the Department are: 

- To ensure financial stability and enhance efficiency;

- To protect depositors; and 

- To champion and coordinate initiatives for the development of the financial sector.  

FUNCTIONS 

To achieve its objectives, the NBFISD supervises all Non-Bank Financial Institutions except for the following: 

- Capital market firms i.e., dealers and stockbrokers, which are supervised by the Securities and Exchange Commission (SEC); and 

- Providers of contractual savings services i.e., insurance companies and pensions schemes.  These are supervised by the Pensions and Insurance Authority (PIA). 

STRUCTURE 

The Department is headed by a Director who oversees four Divisions:  

1. The Regulatory Policy, Licensing and Liquidations Division;  

2. The Examinations and Surveillance Division, Portfolio A;  

3. The Examinations and Surveillance Division, Portfolio B; and 

4. The Financial Sector Development Division. 

COMMITTEES THE DEPARTMENT REPORTS TO 

The Department has delegated responsibilities for the formulation and implementation of supervisory policies.  The supervisory responsibilities are implemented through three committees, namely: 

1. Supervisory Policy Committee 

The Supervisory Policy Committee is responsible for formulating financial sector supervisory policies that are implemented by the supervisory departments in the Bank of Zambia. 

2. Licensing and Designation Committee 

The Licensing and Designation Committee is responsible for reviewing, evaluating and recommending to the Registrar of Financial Services applications for licenses of banks and NBFIs and designation of businesses as payment services providers.   

3. Liquidations Committee 

The Liquidation Committee provides oversight on the affairs of institutions in liquidation

The Human Resource Department is responsible for ensuring that the Bank is, at all times, supplied with employees who share the Bank's vision, and are competent, versatile, and innovative with commitment to delivering quality service to the Bank and other stakeholders. The Department is also responsible for the formulation and implementation of policies and procedures aimed at creating and sustaining a work environment, which attracts, develops and retains a motivated and committed workforce.

In line with the new developments in the management of human capital, the Department has over the years, evolved from one that was primarily associated with the traditional practices of hiring and firing to the one whose activities are eligible to the strategic core business of the Bank. To this end, the Department has facilitated the Bank's adoption of a learning culture by supporting continuous professional development through in-house and external training and personal development programmes.

In addition, the Department has introduced innovative policies and operational procedures in order to keep abreast with current and future market-best practices by embracing good corporate governance principles in most areas of human resources management, including the issues of HIV/AIDS and gender. In the area of HIV/AIDS, the Bank has introduced one of the most advanced and cost effective workplace HIV/AIDS intervention programmes, which has become a model, both locally and in the region. Furthermore, the Department is actively working on new policies, which will consolidate the paradigm shift from the traditional human resources stance to a strategic one in line with the changing objectives and needs of the Bank.

The Information and Communication Technology Department is responsible for providing a reliable and quality information systems support service to the Bank of Zambia. This in order to enable the Bank meet its mission, objectives and responsibilities. The departments three major functional areas are: (a) Infrastructure Operations and Support (IOS), covering Network Operations and Data Centre Operations; (b) Application Development and Support (ADS), covering Administrative Systems, Operational Systems and Business Architecture & Development; and (c) ICT Governance and Compliance (IGC) covering ICT Security & Compliance,ICT Service Management and ICT Service Continuity.

OBJECTIVES 

The Internal Audit Department (IAD) derives its authority from the Board of Directors as defined in the Internal Audit Charter. The purpose of the Department is to provide an independent and objective assurance and consulting activity that is designed to add value and improve the Bank's operations.  

FUNCTIONS 

The Internal Audit Department is responsible for: 

- Enhancing and protecting organisational value by providing risk-based and objective assurance, advice, and insight into the operations of the Bank; and 

- Bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. 

OBJECTIVE

In accordance with the Bank of Zambia Act, 2022 and the National Payment Systems Act, 2007, the Payment Systems Department is responsible for the management, oversight, regulation, and supervision of payment, clearing and settlement systems in Zambia. This is to promote a safe, efficient, and resilient national payment system that supports integrity, transparency, competitiveness, accountability, financial stability, financial inclusion and economic growth.

FUNCTIONS

The main functions of the department include the following: 

• Designate/licence payment service providers including fintechs; 
• Formulate and implement appropriate payment systems policies and regulations to support safety and efficiency of the national payment system; 
• Operate the Real Time Gross Settlement system (RTGS) and the regulatory sandbox 
• Drive developments, innovation, interoperability in the payment systems landscape; 
• Formulate and implement the Payment Systems Oversight framework for monitoring and assessing the performance and risks of payment systems; and 
• Promote financial inclusion through increased access and usage of digital financial services. 

OBJECTIVES 

The mission of the Department is to ensure the efficient provision of procurement, maintenance and office support services to contribute to the attainment of the strategic and operational goals and objectives of the Bank. 

FUNCTIONS 

The functions of the Department are to acquire, store, utilise, maintain and dispose of obsolete and/or redundant assets.

In line with Part IX, Section 55 of the Bank of Zambia Act No. 43 of 1996 and Section 78 of the Banking and Financial Services Act of 1994, as amended in 2000, Bank Supervision Department is responsible for licensing, undertaking prudential supervision and regulation of banks, so as to promote safe, sound and efficient operation and development of the financial system.

OBJECTIVES 

The Regional Office is based in Ndola and its role is to: 

• provide banking and currency services 

• ensure an adequate supply of good quality banknotes and coins 

• provide facilities for trading in Government Securities in the Northern Region covering the Copperbelt, Luapula, Muchinga, Northern, and North-Western provinces 

• Serve as the Bank’s designated Business Continuity Management (BCM) Centre providing contingence services to the bank’s operations.   

FUNCTIONS 

The core functions include Banking and Currency operations, Payment Systems, Economics and Financial Markets. The Administration portfolio covers support services with units representing Human Resources, Finance, Security, Board Services, Procurement & Maintenance, and Information & Communications Technology.   

The objective of the Economics Department is to provide economic information and advisory services to the Bank and the Government of the Republic of Zambia (GRZ) for purposes of formulating and implementing appropriate monetary policy.

OBJECTIVE

The objective of the Risk and Compliance department is to coordinate the risk management and compliance functions of the Bank in a comprehensive, consistent, and systematic manner to mitigate potential threats to the Bank's objectives through proactive assessment and effective treatment of risks.  

FUNCTIONS 

• Maintain a sound risk management framework through the implementation of effective risk management approaches; appropriate policies, guidelines and procedures as well as risk management tools that result in effective risk treatment plans across all enterprise risks. 
• Coordinate the development and management of a fit-for-purpose Business Continuity Management System (BCMS) to enhance the Bank's overall operational resilience and business continuity capabilities. 
• Oversee the development and management of a Compliance Management System (CMS) to enhance the Bank's ability to effectively manage its compliance obligations. 
• Maintain a Procedure Manual wherein detailed operational activities under the department's area of authority and responsibilities are outlined.   
• Develop strategies and mechanisms to effectively manage all resources (Human and Capital) and to undertake general managerial responsibilities including, but not limited to planning, budgeting, succession planning and talent management, monitoring enterprise risks and adherence to compliance obligations, and other duties as may be assigned from time to time.  

OBJECTIVES 

The main objective of the Security Department is to safeguard assets owned and controlled by the Bank of Zambia, as well as provide personal protection to members of staff and clients.  

FUNCTIONS 

The Security Department deploys and manages various security systems (electronic and physical) and processes in all critical points in the Bank for loss prevention and safety through surveillance and access control. The Department is responsible for: 

- Undertaking internal investigations into cases of theft, fraud and other incidents for administrative action and/or referral to the relevant arms of the State for criminal litigation;  

- Facilitating vetting of prospective directors and employees of the Bank, commercial banks, and non-bank financial institutions;  

- Designing and implementing processes and procedures that ensure the Bank's emergency preparedness;  

- Providing security cover to protect the Bank's properties;  

- Coordinating security at institutions owned and controlled by the Bank;  

- Enforcement of any law relating to counterfeiting of banknotes and coins;  

- Providing special protection to VIPs and employees at-risk;  

- Managing all security operations on currency consignments; and  

- Maintaining rapport with State law enforcement agencies. 

OBJECTIVE

To develop strategies and mechanisms to effectively manage all resources (human and capital) and to undertake general managerial responsibilities including, but not limited to planning, training, monitoring special projects, execution of Strategic Plan activities.

FUNCTIONS

• Coordinate and provide technical support to departments in the development and implementation of the Bank's Strategic Plans
• Conduct environmental analysis to facilitate setting of appropriate strategic focus and strategies
• Co-ordinate the development and implementation of the Change and Innovation (CIM) Framework and Policy to embed a culture of adaptability and innovation in the Bank
• Coordinate bank-wide management of the Bank's portfolio of projects including setting criteria for adoption of projects and monitoring on-going project performance to foster successful execution.