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Malawi: Directive on Minimum Capital Ratios for Banks

What are the minimum capital ratios for banks in Malawi?
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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.