Standard Bank lauds Basel II

Standard Bank Malawi has said Basel II, a more stringent risk-based supervision, which requires commercial banks to maintain enough liquidity for the risks that they are taking, is good for the country’s economic growth.

Speaking during a media breakfast in Blantyre on Wednesday, the bank’s chief executive officer Andrew Mashanda said although the regulations are tough, the set of accords enhance a strong financial system, which is key for economic growth.

“Basel II forces commercial banks to lend responsibly and behave as banks. Because this was an adjustment, it caused some discomfort for us, but we have been able to meet Basel II requirements and the liquidity reserve requirements,” he said.

Rolled out in January 2014, Basel II saw some commercial banks pump in more capital while others capitalised on dividends.