Michael Gondwe, the Bank of Zambia governor, believes that tougher capital requirements will "facilitate the flow of investment into the economy" and encourage banks to finance the country's micro-, small- and medium-sized enterprises.

Gondwe, speaking in Lusaka earlier this week, said recent increases in the minimum capital requirements imposed on domestic and foreign banks would "make the banking system strong enough to withstand shocks and instability in the economy".

He argued the healthier