Malawi: Banking Act of 1989
The Banking Act, enacted by the Parliament of Malawi in 1989, provides a framework for the operations of banks and financial institutions in the country.
The Act defines various terms that are commonly used in banking operations and discusses:
- The conditions under which a person shall be deemed to be accepting deposits;
- The licensing of banks and financial institutions, including:
- The necessity of a license;
- The procedure for application;
- Considerations for its issue and cancellation.
- Prudential supervision, including:
- Its scope and goals;
- Disclosure of the capital base of banks, assets, liabilities, profits and losses;
- Auditing and inspection.
- The limitations that banks have in the areas of shares and trading, appointment of officers;
- The restrictions placed by the Reserve Bank;
- Remedial measures that the Reserve Bank can take recourse to if it finds out that a bank is performing in an unlawful manner;
- The procedure that banks need to follow to wind up operations;
- Monetary supervision, detailing the role of the Reserve Bank in preserving the monetary equilibrium in the country;
- Abandoned property - various kinds;
- Fiduciary operations, detailing the limitations that the Reserve Bank places on banks in this matter;
- Other miscellaneous items;
It concludes by listing those banks and financial institutions in the country that are subject to prudential supervision.