Malawi: Directive on Minimum Capital Ratios for Banks
This directive, which was effective from 30th June, 1993, provides instructions on capital adequacy requirements for banks in Malawi.
The directive includes:
- Objectives of the requirement;
- Rationale of maintaining capital;
- Interpretation of terms;
- Capital requirements for banks;
- Computation of capital adequacy;
- Remedial measures;
- Administrative sanctions.
It is divided into four sections that discuss the following:
- The short title, authorization, application and interpretation of the directive;
- The statement of policy;
- The capital requirements of banks;
- Remedial measures and administrative sanctions;
- The date from which the directive is effective.
It concludes with the signature of the Governor.