Regulatory Alerts2018-07-13
Added · Updated
Financial Services (Consolidated Supervision of Banks) Directive, 2018
The Registrar of Financial Institutions establishes consolidated supervision requirements for banks and bank holding companies in Malawi. Bank holding companies must submit annual qualitative information by January 31 and quarterly quantitative returns within 30 days of quarter-end, including capital adequacy ratios and credit concentration data. The Directive mandates full consolidation for entities with over 50% ownership, pro-rata consolidation for significant minority interests between 20% and 50%, and deduction or risk-weighting for investments below 20%. It imposes specific capital limits, prohibiting exposures exceeding 10% of core capital to a single person and 25% to related persons, while requiring board oversight of intra-group transactions and liquidity contingency plans.
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