Commercial banks are robbing Malawians

Thomas Jefferson, 3rd President of the United States (USA) giving an advance warning some 200 years ago said: “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.

It is most amazing how accurate Thomas Jefferson was 200 years ago, because this is exactly what is happening in Malawi today. Many of us are facing serious economic hardships; companies are closing businesses, while banks are boastfully posting billions of kwachas in huge profits”.

Bisnowaty speaking to Nyasa Times

Bisnowaty speaking to Nyasa Times

These are economic obscenities among all of us who have now just been reduced to economic slaves for the bank masters. Malawians and many Organizations are paying 40% or more in interest rates to the banks,while the same banks pay them 10% or less on their savings or fixed deposits. Such a practice and wide gap between the two interest rates are blatantly illegal in many civilized communities.

Investors are kept away and our businessmen continue to fail because of such sky high bank interest rates. In fact many Malawi companies are now choosing to invest in neighboring countries. It’s now time our relevant authorities took action against such banks by simply regulating banking practices.
The banks are blinded by their financial greed to such absurd injustices. I call what is happening in Malawi today “ECONOMIC TERRORISM”. We must all be surprised by the fact that the kwacha is devaluing on a daily basis while we are in the tobacco season. This does not make sense; in fact it is an economic absurdity in Malawi.
It must therefore be a clear indication that someone must be manipulating the currency and making billions of Kwacha in profits on the benefits undeniably reaps from these currency fluctuations. We have seen recently that banks have suddenly dropped their interest rates drastically! While we commend them for this move we must wonder what is different today, which was not there before.

Well, banks will blame RBM for the high requirement of the Liquidity Reserve and high inflation but we all know that they could have easily dropped these rates much earlier. In fact they need not have had the bank rates that high at all.

The only reason for the banks to have had such high interest rates is no other but to make very huge and obscene profits in the middle of so much economic suffering by us all. One wants to know if it is not just callous determination to rip off the innocent and ignorant public. You don’t have to be an economist to see that something is very wrong here. You will note that Thomas Jefferson had in mind been effective control of these banking institutions.

Government, through its agents including the Reserve Bank and through the peoples’ representatives in Parliament, supported by effective legal processes in the Judiciary must always be vigilant and ensure that the beast is tamed. Has this happened?

Although Reserve Bank policies also have an impact on banks Beauvoir as recently we have seen in reduction of Liquidity Reserves Requirement from 15% to 7.5% which has led to reduction in interest rates or RBM directives on currency trading have also slowed down Kwacha depreciation.

I am, though, skeptical that these desperate moves will really make a difference because they are ‘knee-jerk’ reactions. We need to find more permanent solution to stop this madness.

God bless!

  • Honorable David Bisnowaty, MP Lilongwe City Centre Constituency, -Malawi Parliament.
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24 thoughts on “Commercial banks are robbing Malawians”

  1. Mongolia says:

    The observation from our MP are real and we wonder why those in Government fail to borrow these advises. Imagine if you borrow from banks MK700,000 you will make a repayment of MK1,3 million within a period of 3years. This will not be the same when you make a fixed deposit of the same amount. The interest will not even reach to MK50,000.

  2. mbanga says:

    judging by the way people are loosing houses the MP has got very points. its actually shameful that some banks are even advertising three pages that they are selling people’s houses. those who buy are the same people, Asians of Asian origin. not of Malawi origin. This calls for total scrunchy and intervention by people in authority before someone is hanged.

  3. jbm says:

    We have the so called economists but they just stay iddle,this is realy economic sucidal.God save us.

  4. Bratusha says:

    Given a chance I would rather try the likes of Bisnowaty to be Malawi State president. But because we vote on tribal, racial lines we forget that doing so is tantamount to suicide. Keep it up Bisnowaty.

  5. Manganya says:

    I like what number 15(drogba) has commented.what he said ndizowona zokhazokha as well as article ya bisnowaty.But my question ndiyoti kodi boma APM likupangapo chani kuti ululu wa amalawi pa nkhani za chuma wavutawu uchepe? Angoyang’ana basi kuti tizingoberedwabe?

  6. mtichimwitsa says:

    Koma kuba ndalama aboma kutchinjiriza anthu sakutha. Mxiiiii

  7. R.K.Kalira. says:

    This is very painful and I do feel bad because Malawi in Africa seems as if its country where foreigners have met and soon after their businesses they go back to where they belong.This is the right time we real Malawians deserve to wake up as ateam avoid blaming and divisions.I dont agree that its becoz we are ignorant of what is going on concerning our economic this is very wrong.Just look at this MP’s explanation it is proving very well that the right candidates are within us but they are dead.You know we need to realise that to develope a country there must be division of labour just exactly that of a foot-ball team.Everyone must perform his duty as gifted by God.Gentlemen/ladies Malawi has no right and promising direction becoz we the owner and responsible people are busy cross checking and blaming you think this will bring any solution?And this is really true its doubtful if companies will survive we need to be united everyone with the love of being a Malawian should take part in whatever gifted career to work hard otherwise its disastrous.

  8. peter says:

    Do we have political leadership with the will to protect the interests of the people or rather a group of thugs promoting the interests of fellow thugs? Wake up Malawi and take charge of your country. Mr president and all our MPs, this is your job!!!! Let not your hearts rest until there is economic justice in this land!!!!

  9. Madala says:

    National bank of Malawi (NBM( deducts from my basic saving account K350 a month as service charge. So if NBM has 1 million saving accounts, it simply translates to 350 million Kwacha as revenue from service charge from simple savings accounts. So what about corporate accounts, interests on loans etc? Think about those banks when anytime you use ATM card you are deducted service charge? “Thieving” at its best!

  10. drogba says:

    What Honorable Bisnowarty has said is just very true, very but I wonder, doesn’t government know about this?? Why isn’t the government doing anything about this?? Mr Bisnowarty, please table this in parliament next session. In fact I attended the recently Malawi Investment Forum 2015 at BICC in Lilongwe and banking rates was one of the factors debated for a ling time. It was obvious that most investors were reluctant to invest in Malawi with very high borrowing bank rates and too much taxes. I always cry when such banks as NBM boast of hundreds of billions of kwachas in profits in a single quarter of the year while our economy is on its knees like this. Where do you get all this money from?? doesn’t your conscience trouble you when you systematically steal from the poor?? This plus taxes by MRA really leaves people discouraged to do any business. And it is true that most companies are closing down. I inspect companies all over Malawi but bakeries, SMEs, a lot of companies seriously are permanently closing. Why? High borrowing bank rates and too much taxes by MRA, plus ESCOM (Not only blackouts, but too much expensive electricity). Business can’t thrive in such environment. Most are going to Mozambique, Zambia and Zimbabwe. So I agree with Mr Bisnowarty that no matter how much we can attract investors in Malawi, few will come and none will survive. Why? BANKS, MRA, ESCOM. Malawi Government, please for once, take this issue of high borrowing bank rates seriously.otherwise forget about any serious investment

  11. anadimba says:

    the Mp is right especially with us civil servants who took loans from banks thru govt,we are suffering heavily .they deduct beyond what was agreed.when you ask management,they say govt doesnt remit according to the agreemment.govt officials who were on the forefront of this agreement please help.

  12. Malawian says:

    Kauma resident we only voted for bosnowatty a year ago, He hasn’t finished his term in office. Its too early to accuse him of lying. Komanso your comment is out of context. We are talking about banks n interest rates here

  13. jacaranda. says:

    Where is Malawi Human Rights Commission? It has a full Directorate of Economic and Social Rights, but can’t even comment about the exorbitant interest rate the banks are charging at the expense of poor Malawians. Useless Commission.

  14. Vwapuvwapu says:

    Kauma guys, is Kauma in Lilongwe city or out side? Should Bees make the road or encourage city to build the road among other city roads? Anyway you are crying go ahead
    , mutonthola kkkkk.

  15. APM Sangathe says:

    The day Malawi fires Chuka the RBM governor, interest rates will reduce to 18% like Bingu was. Sungawete njoka.

  16. tk says:

    @ Kauma resident

    Am not suprised by your comment.
    Iwedi ndiwe wa kwa Kauma ndithu.
    Shallow minded….mxiii

  17. Ulunji says:

    Kauma resident please comments must be based on the column shared.

  18. Kingsley Yohane Simon says:

    This MP is right, Malawis commercial banks are robbing us. We get low interest rates when saving money while huge interest rates are paid when u borrow money even for a short period term. Malawians lets debate seriously on this issue. Their rates are still high,&they are continuing with the same old rates on the poor malawians while RBM droped with that percentage.Cant we wake up and stand for our economic rights please!

  19. Aubrey Norman says:

    They (Banks) must reduce the interest they are getting from people so that We (Malawians) can end up economic problems we are expeariancing in our country,we are working hard to get money but the problem is if I take the money to the Bank so that they must keep it for Me they want more benefits than the owner.

  20. Cecilia Mapila says:

    What is discussed above is Greek to the majority of our MPs. They don’t know a thing about economics. If you ask MPs of the likes of Bon Kalindo, Lucious Banda about this, what answer will you get? Our Parliament is just a Drama Theater! No hope!

  21. becks says:

    Kauma resident comment on the issue at hand not the person. You are completely missing the point
    AB

  22. becks says:

    The problem is that we are brainwashed to thinking things like the economy are supposed to be run like that. The so education we have believed and embraced as running various systems are but a sham to a greater extent. Let us Be able to think differently without some of these systems like banks

  23. Kauma Resident says:

    Bisnowaty should stop acting like a saint.You lied to Kauma residents that they will constructing a tarmac road from area 12 going to Kauma up to area 43.The moment you got voted into govt,you simply vanished from Lilongwe like a Cheshire Cat.Where are you hiding now?Your constituency are looking for you?Who told you that Kauma people do not need a tarmac road in these modern times?What type of the Mzungu who cannot live up to its promises?Don’t ever expect a vote from us again after 2019.During your campaign period you were even mimicking some nyau steps on the podium deceiving some unsuspecting chewas splashing wads of cash to win their hearts.Kauma is totally neglected.Dusty road with dust all over like all people are dancing Nyau.Live to your promises please.You only know to memorise some speeches by some old American President but failing to practise them.

  24. Twebakiki Shangununu says:

    Hon is Bisnowaty is right on this issue.These Banks are a just a rip off to Malawians.They are making eye popping profits from their loans interest.You deposit k1000 you get an interest of k2 after a year.You borrow K1000 from them,you end up paying k10,000 in interest rates.Is there any justice to customers to be mercilessly squeezed like this?This is a day light robbery legalised by govt so that a few Bank CEOs can enjoy the loot from the ever struggling Malawians.Thomas Jefferson smelled a rat some 200 yrs ago,than these visionless clowns who imposed themselves on us a year ago through the crying Mbendera in the midst of night a year ago.I hate this country the direction it has taken in oppressing its own citizen.People are just contented with their useless titles of Prof and Drs without finding real solutions for this tiny impoverished country.

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