Introduction
The Microfinance and Capital Markets Supervision department is responsible of
regulating and supervising microfinance inclusive financial cooperatives and
capital markets financial institutions.
Mission Statement & Vision
The Microfinance and Capital Markets Supervision Department exists to contribute
towards achievement of Reserve Bank of Malawi's objective of promoting sound and
stable financial system in Malawi. As a department, we aim at supervising
microfinance and capital markets institutions to ensure that they are operated
in a sound and viable manner so as to develop and maintain public confidence in
the financial sector. In this regard, the department's primary responsibility is
to protect the interest of the public by administering a regulatory and
supervisory regime that is in line with generally accepted international
standards that promote transparency and fairness in the operating environment
and encourage microfinance and capital markets financial institutions to confine
their risk taking to acceptable levels.
In pursuance of the mission statement outlined above, the department performs its
work with professionalism, integrity, impartiality, and in a friendly and
cooperative manner but without compromising its authority or mandate.
The department has six key result areas namely:
- entry control
- on-going supervision
- policy development
- enhancement of competition
- consumer education and protection
- exit administration
All
these areas cut across the two divisions of the department, microfinance on one
hand and capital markets on the other.
CONTACT US
The Director Microfinance and Capital Markets Supervision
P.O. Box 565
Blantyre
Phone: 01 820299/444
Fax: 01 830 628
Email: mcsu@rbm.mw
SUPERVISION OF THE MICROFINANCE
The Financial Services Act, 2010 and the Microfinance Act, 2010 are legal frameworks that govern the regulation and supervision of microfinance sector in Malawi. In addition to the laws, Guidelines and Directives on various specific issues are issued to complement the laws.
ONGOING SUPERVISION
The division monitors performance of microfinance institutions through continuous off-site surveillance of all licensed microfinance institutions using financial statements and other operational information submitted by the regulated institutions on a periodic basis. The department also conducts periodic onsite examinations mainly as a follow up on to the off-site findings.
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| Existing Licensed Microfinance Institutions |
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Financial Cooperatives
The department is also entrusted with the responsibility of regulating and supervising financial cooperatives. Registration of financial cooperatives is done by the Registrar of Cooperatives under the Cooperatives Societies Act, 1998 while licensing is done by the Registrar of Financial Institutions under the Financial Services Act, 2010. The Financial Cooperatives Act, 2011 is the legal framework that governs the operations of financial cooperatives in Malawi.
NOTE:
Some documents on this page are in PDF Format. To view these you will need Adobe Acrobat Reader which you can
download for free
| Existing Licensed Financial Cooperative Institutions |
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SUPERVISION OF CAPITAL MARKETS
The Financial Services Act, 2010 and the Securities Act, 2010 are the legislative frameworks that govern the regulation and supervision of capital markets. Under these legal frameworks the Registrar of Financial Institutions is mandated to license and supervise the securities exchanges, brokers, dealers, portfolio managers, market makers, investment advisers and underwriters.
The key regulatory objectives are to protect investors, ensuring that markets are fair, efficient, and transparent; and reduce systemic risk. In this regard the division ensures that all capital market institutions observe high standards of commercial honour and apply just and equitable principles of fair trade to ensure maintenance of fair and orderly market. The division also examines trading practices in the capital market to ensure prevalence of fair, orderly and efficient market conditions and; ensures that investors are adequately protected in order to maintain confidence in the capital market.
ONGOING SUPERVISION
The division monitors financial performance of market players through continued off-site surveillance of all capital market institutions using financial statements provided by the institutions on a regular basis. The department also conducts onsite and ad hoc examinations.
NOTE: Some documents on this page are in PDF Format. To view these you will need Adobe Acrobat Reader which you can
download for free
| Existing Licensed Institutions |
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| Supervisory Activities |
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Onsite examinations:
The following draft directives are under consideration to be issued on the market:
- Fit & Proper Directive (PDF Attachment)
- Corporate Governance Directive (PDF Attachment)
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NOTE:
Some documents on this page are in PDF Format. To view these you will need Adobe Acrobat Reader which you can
download for free
NOTE:
Some documents on this page are in PDF Format. To view these you will need Adobe Acrobat Reader which you can
download for free