Tags: Banks

IPA for better banking in Malawi

Innovations for Poverty Action (IPA) and Bankers Association of Malawi (BAM) last week organised a two-day conference in Lilongwe to appreciate efforts government is making in the financial inclusion agenda and find ways of better banking. IPA country director Dr Thomas Chataghalala Munthali, speaking at the official opening of the conference, said their global financial…

Lombard facility access peaked at K11.5bn in June

Commercial banks starved of liquidity borrowed K11.5 billion in June through the Lombard facility, a rise of 56 percent from K7.36 billion the month before, according to the Reserve Bank of Malawi (RBM) figures, signalling liquidity squeeze in some banks. The RBM introduced the Lombard facility or discount window borrowing in January this year to…

Government credit from banks rises 37 percent

Government credit from commercial banks rose by K66.7 billion, about 37 percent, to K245.8 billion in April compared to the previous month while the private sectors’ shrank in the same period. The Reserve Bank of Malawi (RBM) April 2014 Economic Review released early this month indicates total domestic credit from commercial banks in the period…

Banks ready to support Mtalimanja rice project

Mtalimanja Rice Project chief executive officer Richard Kamchacha has disclosed that three commercial banks have shown interest to fund the organisation after being impressed with the progress so far made at the rice scheme. According to Kamchacha, the banks that have shown interest include National Bank and Standard Bank while Malawi Savings Bank (MSB) already…

Election stand-off worries commercial banks

Commercial banks in the country are anxious about the current political stalemate which they fear could worsen the business environment and wipe out investor confidence the Malawi economy recently accrued. The banks, speaking under the umbrella of the Bankers Association of Malawi (BAM), have also forecast that the rest of the year 2014 could be…

Commercial banks borrow K27.5 billion

Commercial banks borrowed K27.5 billion on the interbank market—from the Reserve Bank of Malawi (RBM) and other commercial banks—according to available data, signalling liquidity squeeze in the money market. The RBM also sold foreign exchange amounting K583 million on May 2 to the market apparently to support importation of the country’s critical requirements.   In…

Depositors’ protection scheme in the offing

Malawi Government has plans to protect “small and unsophisticated depositors” through the establishment of a deposit insurance scheme (DIS) to cushion depositors in case of a bank failure. This is one of government’s moves to strengthen the stability of the financial system while expanding the financial safety net. Already, the national task force headed by…