Malawi: Directive on Minimum Capital Ratios for Banks

This directive, which was effective from 30th June, 1993, provides instructions on capital adequacy requirements for banks in Malawi.

The directive includes:

• Objectives of the requirement;
• Rationale of maintaining capital;
• Interpretation of terms;
• Capital requirements for banks;
• Computation of capital adequacy;
• Remedial measures;
• Administrative sanctions.

It is divided into four sections that discuss the following:

• The short title, authorization, application and interpretation of the directive;
• The statement of policy;
• The capital requirements of banks;
• Remedial measures and administrative sanctions;
• The date from which the directive is effective.

It concludes with the signature of the Governor.