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?
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.