MPs approve reforms to improve financial sector

By Mercy Matonga: Parliament Tuesday passed the Banking (Amendment) Bill of 2026, which seeks to amend the Banking Act to provide more options for dealing with failing banks, and the Financial Services (Amendment) Bill of 2026, which aims to strengthen regulation of the financial sector. Minister of Finance Joseph Mwanamvekha said the Banking (Amendment) Bill would address gaps in the existing legal framework and facilitate the recapitalisation of failing banks through additional shares by existing shareholders or investment from new shareholders. Mwanamvekha said the bill also provides for unclaimed liquidation balances to be managed under the Public Finance Management Act, ensuring such funds are subject to public audits, Treasury controls and standardised reporting. The bill empowers the Registrar to remove shareholders of banks or bank holding companies who no longer meet fit and proper requirements. It also outlines procedures for identifying and validating claims during liquidation. A liquidator will be required to prepare a list of approved and rejected claims, determine amounts owed to depositors and creditors and notify affected parties of the outcome of their claims. The bill further allows depositors, creditors and shareholders to object to proposed actions by a liquidator within 21 days of the filing of the schedule of proposed actions. Speaking on behalf of the joint Legal and Budget committees, Sosten Gwengwe said the bill would establish a clear legal framework for managing unclaimed funds from liquidated financial institutions. "The committee is therefore of the view that the bill will enhance legal certainty, promote transparency and accountability in the administration of unclaimed funds and strengthen confidence in Malawi's financial regulatory framework," Gwengwe said. However, Gwengwe said some areas still require improvement, including the disposal of unclaimed funds. "There is a need for clear regulations and checks and balances for the Registrar. There is also a need to make unclaimed money public so that people should be able to claim," he said.

WIRE — By Mercy Matonga: Parliament Tuesday passed the Banking (Amendment) Bill of 2026, which seeks to amend the Banking Act to provide more options for dealing with failing banks, and the Financial Services (Amendment) Bill of 2026, which aims to strengthen regulation of the financial sector. Minister of Finance Joseph Mwanamvekha said the Banking (Amendment) Bill would address gaps in the existing legal framework and facilitate the recapitalisation of failing banks through additional shares by existing shareholders or investment from new shareholders. Mwanamvekha said the bill also provides for unclaimed liquidation balances to be managed under the Public Finance Management Act, ensuring such funds are subject to public audits, Treasury controls and standardised reporting. The bill empowers the Registrar to remove shareholders of banks or bank holding companies who no longer meet fit and proper requirements. It also outlines procedures for identifying and validating claims during liquidation. A liquidator will be required to prepare a list of approved and rejected claims, determine amounts owed to depositors and creditors and notify affected parties of the outcome of their claims. The bill further allows depositors, creditors and shareholders to object to proposed actions by a liquidator within 21 days of the filing of the schedule of proposed actions. Speaking on behalf of the joint Legal and Budget committees, Sosten Gwengwe said the bill would establish a clear legal framework for managing unclaimed funds from liquidated financial institutions. "The committee is therefore of the view that the bill will enhance legal certainty, promote transparency and accountability in the administration of unclaimed funds and strengthen confidence in Malawi's financial regulatory framework," Gwengwe said. However, Gwengwe said some areas still require improvement, including the disposal of unclaimed funds. "There is a need for clear regulations and checks and balances for the Registrar. There is also a need to make unclaimed money public so that people should be able to claim," he said.

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