Regulatory Alerts2018-01-01
Prompt Corrective Action for Deposit Taking Microfinance Institutions Directive 2018
Issued by the Registrar of Financial Institutions in Malawi, this directive establishes a tiered framework of prompt corrective actions and enforcement measures for deposit-taking microfinance institutions based on their capital adequacy and liquidity ratios. It mandates specific supervisory interventions, administrative penalties, and capital restoration requirements for institutions categorized from marginally to critically undercapitalised or illiquid status. Concurrently, the directive imposes strict exposure limits on banks' transactions with insiders and related parties, requiring arm's-length pricing, board oversight, detailed disclosures, and revokes the previous 2012 related parties directive.
Share