Malawi banks have a basic banking system with not many facilities. People there are not much conscious about banking.
Malawi banks are few in number. There are five banks, which have commercial license apart from the Central bank of Malawi. The two most important banks of Malawi dominate banking sector of Malawi - the Commercial Bank of Malawi and the National Bank of Malawi. The other banks are- NBS bank Limited, Reserve Bank of Malawi and the Stanbic Bank Limited.
The parliament has laid down certain rules and regulations for the banks to follow. This act defines the terms "banks", "capital adequacy", and "banking business". It defines that license is absolutely necessary for the banks in Malawi and that the Reserve Bank can grant or refrain from giving it. It describes the goal of Reserve Bank, places guidelines for banks, and discusses structural know-how's and restrictions. Enlists the actions that reserve bank can take if it finds out any unconventionality in the conduct of the banks. It also discusses about the Companies Act, which relates to the winding up of companies. It also contains the list of articles that the Reserve Bank considers abandoned and also the directives, which protect the monetary value.
The Malawi government is the largest shareholder in the Malawi Banks. Till 31st March 1999 the total assets of the banks reached to an estimate of $300million. There are three other commercial Banks in Malawi. They are First Merchant Bank Limited, the Finance Bank of Malawi and Indefiance. The New Building Society, which started operating from March 1964, had assets amounting to $244.5 million in 1995. The Indebank provides medium and long-term credit. The MDC, which provides for the large estates, is owned by the state. Malawi Stock Exchange was set up to handle the shares of various companies and to act as a broker for the government. There is also a provision of internet banking.
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