Malawi’s economic woes taking toll on financial institutions

The country’s financial institutions are plying their trade under extreme economic conditions that have adverse effects on their service delivery, Reserve Bank of Malawi (RBM) has observed.

RBM Deputy Governor for Supervision, Dr Grant Kabango made the observation at the official opening of Inde Bank’s New Henderson Street Branch in Blantyre on Wednesday.

He noted that bad economic weather infested with struggling liquidity conditions, high interest rates and depreciation of local currency have affected monetary institution’s service delivery.

Said Kabango: “We are aware that banks and other financial institutions have operated under difficult economic conditions over the past six months.

“But as a regulator, we are doing everything possible to create a conducive environment so that you can achieve your goals optimally.”

Budgeting in economic turmoil

The RBM Supervision commended Inde Bank for braving the tough economic conditions; saying opening of the New Henderson Street Branch symbolizes the ability the institution has to cope with economic turbulences that are normal in the economic world.

Kabango said the new branch is a testimony of trust and support existing between the institution and clients comprising both individuals and the business sector.

“We have noted that the bank has reciprocated with strong commitment to support the local business as well as its individual clients through the provision of ‘tailor made’ services and products.

“Let this trend continue because this support and commitment has never been more necessary than it is in the present challenging economic situation,” hailed Kabango.

Taking his turn, Inde Bank’s Chairman, Isaac Nsamala said the institution’s drive to have Small and Medium Enterprises (SMEs) who form the backbone of the country’s economy, will greatly be enhanced with the new service center due to its spaciousness and strategic positioning.

Said Nsamala; “Management has been tasked to give special focus to Personal & SME segment and I am certain that small and medium enterprises will benefit from this initiative in the long run.”

The new service center’s establishment coincides with the institution’s 40th anniversary commemoration following its establishment in 1972.

The bank, which operated for 29 years as an Investment and Development Bank graduated into a fully fledged Commercial Bank in 2001 and changed its name to the current Inde Bank Limited.

The new Henderson Street Branch becomes the 15 service center to be established following the opening of the Mangochi Branch in September, this year.

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