Tags: Commercial Banks

ATM certification for Nat Switch ends March

The country’s commercial banks will by March end have completed certifying their automated teller machines (ATMs) to transact on the National Switch (Nat Switch), an official has said. Nat Switch steering committee chairperson William Kaunda told Business News on Monday that by that time, card holders will have access to over 480 ATMs connected to…

National Switch to go live early 2015—RBM

The National Switch (Nat Switch), a shared switch platform to connect all the country’s commercial banks, will go live in early 2015, with preparations for the roll-out at an advanced stage, the Reserve Bank of Malawi (RBM) has confirmed. The switch was already installed, tested, fully configured and the banks started to test connectivity and…

Liquidity challenges hit commercial banks

Some commercial banks are struggling to meet their daily minimum liquidity requirements and have resorted to borrowing from Reserve Bank of Malawi (RBM), driving up interest rates. Analysts have said this has the potential of threatening to uphold current prohibitive bank lending rates, hovering at 40 percent. RBM figures show that financial institutions borrowed up…

Commercial bank presence triples

Commercial bank branches, as measured by geographical presence and in relation to population tripled in the last two years consequently improving access to financial services. The International Monetary Fund (IMF) Financial Access Survey (FAS) data updated this week indicate that bank branches per 1 000 square kilometres more than tripled, rising to 3.04 in 2013…

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…

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…