Malawi: Guidelines for Business Plan Submissions

The Reserve Bank of Malawi requires these guidelines to review the detailed business plan as part of the application process. The guidelines include a suggested format for preparing a business plan.

The guidelines explain that:

• Banks should have a business plan that sets for the objectives and strategies of the Board of Directors;
• The plan should:
  • Provide basic guidance for internal management,
  • Allow for flexibility and change;
• The Reserve Bank will review an institution's business plan at periodic examinations or when other regulatory issues arise;
• Organizations applying for a banking license must submit for review a detailed business plan as part of the application process;
• When establishing a branch or making a significant change in operations, an institution should submit an amended business plan.

The business plan should:

• Identify the proposed markets to be served, products and services to be offered, projected profitability, capital adequacy, and managerial resources and capabilities;
• Include at least three years' operating projections;
• Consist of sufficient information to demonstrate a reasonable likelihood of success.

The suggested format of the business plan includes:

• Identifying information;
• Market analysis and a description of the economic characteristics of the target market;
• Business strategy and objectives;
• Leadership and management;
• Capitalization and additional sources.