By Suleman Chitera | Malawi Freedom Network

Minister of Finance Joseph Mwanamvekha has said the proposed Banking Amendment Bill is designed to strengthen Malawi’s financial sector by protecting citizens, combating money laundering, and reducing financial losses within the banking industry.

Presenting the Bill in Parliament, Mwanamvekha said the amendments are intended to enhance the stability of financial institutions while ensuring that regulators have the necessary tools to respond swiftly to risks that could threaten the country’s banking system.

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“The proposed legislation seeks to safeguard the interests of Malawians by strengthening oversight of financial institutions, addressing money laundering, and preventing financial losses that undermine confidence in the banking sector,” the minister said.

Meanwhile, Chairperson of Parliament’s Budget and Finance Committee, Sosten Gwengwe, welcomed the proposed reforms but stressed that the additional powers to be granted to the Registrar of Financial Institutions must be exercised responsibly and within the law.

Gwengwe urged the Minister of Finance to ensure that the amended legislation contains adequate safeguards to prevent any abuse of authority by the Registrar.Mwanamveka Praised for Driving Malawi’s Economic Recovery

“The committee supports the reforms but believes strong accountability measures are essential to ensure that the expanded powers are used fairly, transparently, and in the public interest,” he said.

The committee has also recommended that the Reserve Bank of Malawi (RBM) and the Ministry of Finance develop comprehensive regulations to guide the implementation of the new banking resolution framework. According to the committee, clear regulations will help ensure consistency, transparency, and effectiveness when dealing with troubled financial institutions.

In addition, Gwengwe emphasized that both the Registrar and the Ministry must prioritize the protection of depositors and shareholders, whose confidence is critical to maintaining a stable financial system.

He further called on the Reserve Bank of Malawi to promote greater financial inclusion by ensuring that banking services become more accessible to people across the country, particularly those in underserved and rural communities.Mwanamvekha: The Steady Hand Behind Malawi’s Economic Direction

According to Gwengwe, expanding access to banking services will support economic growth, encourage savings, and increase participation in the formal financial sector.

He expressed confidence that once enacted, the Banking Amendment Bill will strengthen Malawi’s banking industry by improving regulation, enhancing public confidence, and creating a more resilient financial system capable of supporting sustainable economic development.

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The proposed legislation forms part of the government’s broader efforts to modernize financial sector laws, improve governance, and align Malawi’s banking framework with international best practices in financial regulation and anti-money laundering measures.