The Reserve Bank adopted a gradual approach to Basel II implementation to allow for a smooth transition and enable banking institutions to build the requisite capacity to operate in a Basel II environment. The Reserve Bank laid the foundation for Basel II Implementation through the rolling out of Risk Based Supervision (RBS) and issuance of a number of Prudential Guidelines focusing on specific aspects of Pillars I to III.

Please read the Implementation Roadmap on Page 23 of the July 2011 Monetary Policy Statement

In summary, the Basel II framework consists of three mutually reinforcing pillars. Under Pillar 1, the framework allows for a continuum of approaches for computing regulatory capital in respect of credit, market and operational risks. The measurement approaches range from simple to advanced methods. The simple methods are standardised methods which are prescribed by supervisors whereas the advanced approaches are based on the use of a bank’s
own internal models.

To this extend, the Revised Framework narrows the gap between regulatory capital as set by regulatory authorities and economic capital, as measured by the bank’s internal models.

Download the Technical Guidance on the Implementation of the Revised Capital Adequacy Framework in Zimbabwe

• Collateral Registry Informational Pamphlet - November 2022 [.pdf | 1.30 MB]