Regulatory Alerts2024-01-01
Liquidity Coverage Ratio Guidelines 2024
The Registrar of Financial Institutions issued these guidelines to implement a mandatory Liquidity Coverage Ratio framework for all banking institutions in Malawi. The regulations require banks to maintain a minimum LCR of 100% by holding sufficient unencumbered high-quality liquid assets capable of covering total net cash outflows during a severe 30-day stress scenario. Institutions must also deploy reliable daily liquidity management systems, adhere to strict HQLA qualification criteria, and accurately calculate cash inflow and outflow rates to ensure ongoing short-term liquidity resilience.
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