In 2005, 4 commercial banks launched the E-switch facility to allow their customers to share their ATMs and other payment delivery channels, like point of sale terminals. These services were unheard of before the reforms and were supported by the international community. •  Commercial banks have also embarked on other initiatives including expansion programmes based on the community banking concept. This is consistent with the rural banking concept and is intended to provide financial services to those sectors of the community that are not currently serviced by the banking sector. BIS Review 72/2006  1  Your Excellency, to meet the challenges which come with an expanded banking sector and in our desire to continue modernising the overall financial sector, it has been imperative to strengthen the prudential and supervisory mandate of the Bank of Zambia. In this regard, the key initiatives that have been endorsed, with an ultimate goal of promoting safe, sound and efficient operations have included: •  The enactment and amendment of the Banking and Financial Services Acts in 1994 and 2000, respectively.
Caleb M Fundanga: Banking in Zambia and the Kwacha appreciation Speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the German Ambassador’s working lunch, Lusaka, 7 June 2006. *  *  *  •  Your Excellency, the Germany Ambassador to Zambia, Dr. Ireen Hinrichsen;  •  Representatives of German Banks in South Africa;  •  The German Business Community;  •  Representatives of Local Banks;  •  Distinguished Ladies and Gentlemen. On behalf of the Zambian people and indeed on my own behalf, it gives me great pleasure to welcome our German visitors to Zambia. I am deeply humbled to be invited for this business luncheon hosted by Your Excellency. This interaction, Distinguished Ladies and Gentlemen, is very important to foster and enhance mutual co-operation between our two great nations. Your Excellency, with your permission, I will begin my address by discussing banking in Zambia and then proceed to give some highlights on the recent economic developments in the country. Distinguished Ladies and Gentlemen, in the early 1990s, Zambia embarked on economic liberalisation, of which reforming the financial sector was a major part. Specific measures which were undertaken included, among others, the removal of all restrictions on interest rates and elimination of controls on foreign exchange rates. Interest and exchange rates are now market determined, principally based on demand and supply.