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Malawi: Parliamentary Committee Obtaining Submissions On Banking Amendment Bill

The Budget and Finance Committee of Parliament is this week expected to meet officials from all eight commercial banks in a bid to obtain their submissions on the controversial Banking Act Amendment Bill of 2022.

According to a programme released by Parliament’s secretariat, the meetings will take place from Tuesday to Thursday at Parliament Building in the Capital, Lilongwe.

The meetings come after Parliament had referred the Banking Act Amendment Bill to the Budget and Finance Committee as the main opposition, the Democratic Progressive Party (DPP), feared it might scare investors. But the government reportedly disputed DPP’s fears.

The bill seeks to amend the Banking Act to provide more options for dealing with ‘failing banks’ at the same time protecting people who deal with the banks.

Among others, the bill gives power to the Registrar of Financial Institutions to facilitate mandatory recapitalization of ‘failing banks’, carry out a purchase and acquisition transaction involving the transfer of assets and liabilities of a failed bank without requiring prior approval of shareholders.

According to the schedule for the meetings, on Tuesday, the Budget and Finance Committee will meet officials from my MyBucks, Standard Bank and NBS Bank.

On Wednesday, the committee will meet National Bank, FDH Bank and Ecobank officials. Meetings with First Capital Bank and CDH Investment Bank officials will take place Thursday.