Regulatory Alerts2018-01-01
Non-Deposit Taking Microfinance Institutions Directive 2018
Issued by the Registrar of Financial Institutions under the Microfinance Act, this Directive establishes comprehensive licensing, operating, and prudential requirements for non-deposit taking microfinance institutions in Malawi. It mandates a minimum capital of MK100,000,000, requires institutions to maintain governance standards and submit quarterly financial reports, and subjects larger entities with assets exceeding MK3 billion or revenues over MK2.2 billion to enhanced prudential regulation. The framework further enforces strict market conduct rules, including effective interest rate disclosure, limits on insider and compulsory savings loans, fraud reporting obligations, and monetary penalties of up to MK5,000,000 for non-compliance.
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