Malawi: Guidelines for Prospective Applicants for a Bank or FI License, RBM

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.