Regulatory Alerts2018-01-01
Financial Services (Capital Adequacy for Banks) Directive, 2018
The Registrar of Financial Institutions in Malawi issued the 2018 Capital Adequacy Directive to mandate minimum core capital of USD five million for banks and USD 1.5 million for leasing companies, alongside a ten percent core capital ratio and fifteen percent total capital ratio. Banks and bank holding companies must maintain these levels on both solo and consolidated bases, adopt comprehensive internal assessment processes, and submit monthly Capital Adequacy Schedules. The framework enforces compliance through administrative directions and monetary penalties of up to K50 million for institutions and K10 million for directors, while formally revoking the 2014 capital adequacy rules.
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