Malawi: Directive on Minimum Capital Ratios for Banks

Publication Date: 30 Jun 1993
Published by: Reserve Bank of Malawi (RBM)
Document Type: Other (PDF)

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What are the minimum capital ratios for banks in Malawi?

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.