Regulatory Alerts2018-01-01
Financial Services (Prudential Liquidity Requirements for Banks) Directive 2018
Issued by the Registrar of Financial Institutions, this Directive establishes comprehensive prudential liquidity requirements for Malawian banks. It mandates that bank boards maintain a minimum twenty-five percent liquidity ratio, conduct regular stress tests, and submit monthly reports using the prescribed Call Report Template. Non-compliance triggers administrative directions and monetary penalties of up to fifty million Kwacha for banks and ten million Kwacha for directors or senior management, while formally revoking the 2014 liquidity directive.
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