Parliament has passed Bill No. 9 of 2026, the Banking (Amendment) Bill, aimed at strengthening Malawi’s banking sector through enhanced regulatory oversight and improved mechanisms for resolving distressed financial institutions.
Presenting the Bill, Minister of Finance and Economic Planning Joseph Mwanamvekha said the proposed amendments introduce additional options for resolving failing banks while strengthening early intervention measures by regulators.
Mwanamvekha said the reforms expand the legal framework for bank resolution, facilitate timely regulatory intervention, and enhance the protection of depositors. He added that the amendments are designed to promote financial stability and maintain public confidence in the country’s banking system.
Under the new law, the Registrar of Financial Institutions will be empowered to facilitate bank recapitalisations, mergers, the establishment of bridge banks, and the transfer of assets where necessary to preserve financial stability.
The legislation also introduces stricter corporate governance measures by limiting insider and related-party lending to 10 percent of a bank’s core capital, a move intended to reduce conflicts of interest and strengthen risk management.
The Bill received unanimous support from political party spokespersons, the Joint Parliamentary Committee on Legal Affairs, the Budget and Finance Committee, and other Members of Parliament. Legislators said the amendments would enable the swift resolution of distressed banks, ensure the orderly transfer of viable assets, and better protect depositors from financial losses.
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