Regulatory Alerts2018-01-01
Foreign Currency Lending Directive 2018
Issued by the Registrar of Financial Institutions under the Banking Act, this directive mandates that Malawian banks restrict foreign currency lending to ninety percent of their preceding monthly average Foreign Currency Denominated Account balances. It requires banks to limit such lending primarily to customers engaged in foreign exchange-generating activities or businesses of strategic national importance, while obligating the Board and executive officers to adopt annual lending policies and submit monthly reports by the tenth day of each month. Non-compliance triggers monetary penalties of up to fifty million Kwacha for banks and ten million Kwacha for senior management, alongside administrative sanctions, effectively replacing the 2010 Foreign Currency Lending Ratio Directive.