Paper
Malawi: Guidelines for Prospective Applicants for a Bank or FI License, RBM
What are the legal requirements for banks and financial institutions applying for license in Malawi?
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3 pages
This booklet, issued by The Reserve Bank of Malawi (RBM), aims to provide information and direction for making an application for the establishment of a bank.
The booklet describes:
- The basic banking laws in Malawi, stipulating the requirements of:
- A license by the Reserve Bank of Malawi;
- Two persons of executive capacity;
- Adequate capital;
- Submission of periodic financial data;
- Internal audit done by an independent auditor.
- Activities and statutory requirements, listing:
- Types of institutions commercial banks, merchant banks, finance institutions and mortgages;
- Permissible activities demand deposits, savings, fiduciary activities;
- Statutory requirements lending limit, minimum deposit limit, minimum capital, reserve requirements.
- The application process.
- Licensing criteria that include:
- Competence and experience of management;
- Adequacy of capital strength;
- Profitability prospects of the new institution;
- The need for services and the need for competition in the financial system;
- The rating of a foreign bank by international rating agencies.
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