Malawi: Banking Act, 1989

Publication Date: 29 Dec 1989
Published by: Reserve Bank of Malawi (RBM)
Document Type: Other (PDF)

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What are the provisions governing the banks and financial institutions?

This Banking Act, enacted by the Parliament of Malawi, is divided into the following parts:

Preliminary:

• Defines and interprets various terms such as ‘bank’, ‘banking business’, ‘capital adequacy’, etc.

Licensing of Banks and Financial institutions:

• Highlights the importance of obtaining a license before conducting any banking business and describes the process of applying for a license;
  
• Cites the reasons why the Reserve Bank may not grant a license or may revoke the license.

Prudential Supervision:

• Describes the goals of the Reserve Bank in supervising banks and financial institutions;
  
• Outlines the obligations of banks and financial institutions;
  
• Discusses structural matters and limitations.

Remedial Measures:

• Lists the actions that the Reserve Bank may take if it finds out that a bank or financial institution is conducting its business in an unsound or illegal manner.

Winding Up:

• Discusses the provisions of the ‘Companies Act’ relating to the winding-up of companies that the Reserve Bank can apply to licensed banks and financial institutions.

Monetary Supervision:

• Lists matters regarding which the Reserve Bank may issue directives in order to protect the external values of the national currency, the monetary equilibrium and other economic objectives. Abandoned Property:
  
• Lists the items held by banks that that the Reserve Bank considers abandoned.

Fiduciary Operations:

• Describe the limitations set out by the Reserve Bank on fiduciary operations.