The Reserve Bank of Malawi (RBM) says the newly-licensed New Finance Bank will operate under a normal regulatory framework and there is no need for investors and depositors to be uneasy over its operations.
The former Finance Bank underwent voluntary liquidation some time in 2005. The bank has now been granted a new license to resume its operations following an application by its shareholders to trade as New Finance Bank. Earlier in March, Finance Bank Zambia announced that the bank was set to resume operations in Malawi.
The Reserve Bank of Malawi has since confirmed the return of Finance Bank. Spokesperson of the Reserve Bank of Malawi Mbane Ngwira recently said that while some of the bank’s shareholders might be the same, New Finance Bank would strictly be a different entity altogether.
“There is no need for concern as Finance Bank was placed under voluntary liquidation by its owners and not necessarily forced to do so. The one we have financed now is the New Finance Bank. There could be some similarities in shareholders but these are different banks. Our regulations accept that if you were under voluntary liquidation you can also apply for licensing,” added Ngwira. He said further investor fears should be eased by the realization that the new bank will also be regulated as other banks.