By Suleman Chitera
Lilongwe, 12 February 2026 – The Center for Democracy and Economic Development Initiative (CDEDI) has issued a stern warning over the Supreme Court’s recent ruling in favor of Finance Bank, cautioning that the decision could have devastating consequences for Malawi’s fragile economy.
The Supreme Court ruled that the Reserve Bank of Malawi failed to follow proper procedures when it intervened in Finance Bank’s operations and ordered that the bank be allowed to resume its commercial activities. The judgment effectively overturns years of regulatory measures aimed at containing financial instability.
Speaking to journalists in Lilongwe, CDEDI Executive Director Sylvester Namiwa described the ruling as “dangerous and reckless,” emphasizing that it could strain public finances. “Malawi is already burdened with massive national debt. Injecting huge sums of taxpayer money into a bank that had previously collapsed is a recipe for further economic disaster,” Namiwa said.
He warned that unless alternative measures are adopted, the country risks plunging deeper into financial instability, with taxpayers footing the bill for mistakes that were never theirs.
CDEDI’s statement adds to growing concern among civil society groups that the ruling could set a precedent where regulatory safeguards are ignored, potentially destabilizing the banking sector and eroding public confidence in financial institutions.
The Finance Bank case, which has dragged on for years, now stands as a stark warning about the delicate balance between judicial intervention and economic prudence in Malawi.
