Regulatory Alerts2014-01-01
Microfinance Deposit-Taking Institutions Directives (2014)
The Reserve Bank of Malawi issues these directives requiring deposit-taking microfinance institutions to comply with comprehensive regulations covering asset classification, capital adequacy, corporate governance, licensing, liquidity, premises inspection, and financial reporting. The framework mandates standardized asset classification categories from standard to loss, requiring institutions to apply corresponding loan loss provisioning percentages and submit monthly asset quality reports alongside quarterly portfolio assessments. Enforcement mechanisms include mandatory board oversight, strict limits on large exposures exceeding ten percent of core capital, and substantial monetary penalties for non-compliance.
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