The Bank of Zambia regulates and supervises financial service providers through a combination of off-site surveillance and periodic on-site inspections. The supervisory process comprises the following key stages:

Licensing Stage - The supervision departments evaluates licence applications for banks and non-bank financial institutions and makes recommendations to the Registrar of Banks and Financial Institutions, through the appropriate supervisory structures.

Off-site Surveillance - The supervision departments conduct continuous off-site surveillance and analysis of the financial service providers' financial performance and condition. The information used in this process is prescribed for submission by the financial service providers at pre-determined frequency.

On-site Examinations - The supervision departments conducts on-site examinations of financial service providers in order to assess their financial performance and condition; review the adequacy of their corporate governance structures and their internal risk management processes; and their general compliance with the laws and regulations.

Formulation and Review of laws and Regulations - The supervision departments coordinate all matters relating to the drafting and/or review of the regulatory framework under which all the licensed financial service providers are supervised.

Manage liquidations - The supervision departments are responsible for managing financial institutions under liquidation in order to ensure that resolution of the failed financial institutions is conducted in an orderly manner.