Voluntary Liquidation of Zambian Financial Service Providers and Depositor Protection: Comparative Study with Nigeria, Kenya and South Africa

Abstract

Financial services providers are, by their nature, special due to a unique role they play in the economy of any country through financial intermediary. Consequently, they are subject to a distinct set of rules that may not apply to ordinary entities. The special status of financial services providers is widely recognized. Financial service providers play a key role in financial stability in respect of the financial system and the economy as a whole. Growth of financial services industry has led financial services provider to become too big and too interconnected and in terms of supervisory authorities too important for financial stability.2 Further, the intensification of the linkages between banks through interbank payments and interbank deposits has greatly expanded the scope of financial shocks.