Regulatory Alerts2024-01-01
(Amendment) Capital Adequacy for Banks Directive, 2024
The Registrar of Financial Institutions in Malawi has amended the Capital Adequacy for Banks Directive to mandate a minimum core capital of K10 billion for all licensed banks. This amendment replaces the previous capital threshold in paragraph 5 and corrects cross-referential wording in subsections (3) and (4). Issued on May 1, 2024, the directive strengthens regulatory compliance by ensuring financial institutions maintain adequate capital buffers to support systemic stability.
GOVERNMENT NOTICE NO. 29 FINANCIAL SERVICES ACT (CAP. 44:05) FINANCIAL SERVICES (CAPITAL ADEQUACY FOR BANKS) (AMENDMENT) DIRECTIVE, 2024 IN EXERCISE of the powers conferred by section 34(2)(c) of the Financial Services Act, I, DR. WILSON TONINGA BANDA, Registrar of Financial Institutions, issue the following Directive__
- This Directive may be cited as Financial Services (Capital Adequacy for Banks) (Amendment) Directive, 2024.
- The Financial Services (Capital Adequacy for Banks) Directive is amended in paragraph 5 by deleting__ (a) subparagraph (1) and substituting therefor a new subparagraph as follows__ “(1) A bank shall maintain a minimum core capital of (K10,000,000,000).”. (b) in subparagraph (3), the words “subparagraphs (1) and” and substituting therefor the word “subparagraph”; and (c) in subparagraph (4), the words “subparagraphs (1) and” and substituting therefor the word “subparagraph”. Issued this 1st day of May, 2024. DR. W. T. BANDA (REF. NO. FIN/PFSPD/02/12) Registrar of Financial Institutions 127 The Malawi Gazette Supplement, dated 24th May, 2024, containing Regulations, Rules, etc. (No. 15A) Citation Amendment of para. 5 to Cap. 44:05, Sub. leg. GN. 19/2018