DEPOSIT INSURANCE CORPORATION

CHAPTER 44:06
DEPOSIT INSURANCE CORPORATION

ARRANGEMENT OF SECTIONS

    SECTION

PART I
PRELIMINARY

    1.    Short title

    2.    Interpretation

PART II
THE DEPOSIT INSURANCE CORPORATION

    3.    Establishment of the Deposit Insurance Corporation

    4.    Board of Corporation

    5.    Persons not eligible for appointment as members of the Board

    6.    Termination of appointment and filling of vacancies

    7.    Tenure of office

    8.    Conduct of business and affairs of the Board and allowances

    9.    Powers of the Board

    10.    Functions of the Corporation

    11.    Powers of the Corporation

    12.    Arrangement with other agencies

    13.    Director General

    14.    Staff of the Corporation

    15.    Annual report

PART III
CAPITAL AND FUNDS OF THE CORPORATION

    16.    Capital of the Corporation

    17.    Source of funds of the Corporation

    18.    Deposit insurance funds

    19.    General Reserve Fund

    20.    Investment

    21.    Expenditure

    22.    Accounts and audit

PART IV
DEPOSIT INSURANCE SCHEME

    23.    Establishment and membership

    24.    Uninsured deposits

    25.    Assessment of premium rates

    26.    Special contribution

    27.    Payment of dividends while in default of obligation

    28.    Prohibition of set off

    29.    Determination of insured amounts

    30.    Payment of claims to clients

    31.    Power to withhold payment of client’s claims

    32.    Limitations of payment claims

PART V
SUPERVISION OF THE INSURED INSTITUTIONS

    33.    Examiners

    34.    Submission of returns

    35.    Penalties for wilful failure to submit information, etc.

    36.    Obligation of a failing insured institution

    37.    Report of special examination and corrective actions required of insured institution

PART VI
TERMINATION OF INSURED STATUS

    38.    Grounds for termination of insured status

    39.    Procedure before termination of insured status

    40.    Termination of insured status and consequences

PART VII
RESOLUTION OF FAILING INSURED INSTITUTIONS

    41.    Financial assistance

    42.    Management and resolution

    43.    Bridge institution

    44.    Appointment of the Corporation as liquidator

    45.    Powers of the liquidator

    46.    Appointment of agent

    47.    Limitation Act not applicable

PART VIII
OFFENCES

    48.    Prohibition against insuring funds by person other than the Corporation

    49.    Liability of directors and officers of insured institutions

    50.    Administrative penalties

PART IX
MISCELLANEOUS

    51.    Advertisement of insured status

    52.    Exemption from Insurance Act

    53.    Guarantee of borrowing by the Reserve Bank

    54.    Exchange of information

    55.    Obligations of an external auditor

    56.    Confidentiality

    57.    Protection from liability

    58.    Regulations

    59.    Transition

10 of 2022
G.N. 47/2023

    An Act to establish the Deposit Insurance Corporation and to provide for its powers, functions, management, operation and matters incidental thereto

PART I
PRELIMINARY

1.    Short title

    This Act may be cited as the Deposit Insurance Corporation Act.

2.    Interpretation

    In this Act, unless the context otherwise requires—

    “applicable deposit liabilities” means total deposit liabilities in books of a bank or other deposit taking financial institutions less uninsured deposits;

    “asset management company” means a company created for the purpose of acquiring assets of a failing or failed insured institution;

    “bank” has the meaning ascribed to that term in the Banking Act;

    “bank rate” means the bank rate of the Reserve Bank of Malawi;

    “Board” means the Board of Directors of the Corporation constituted under section 4;

    “bridge institution” means financial institution created by the Corporation in accordance with section 43;

    “client” means—

    (a)    a depositor in a bank or any other financial institution;

    (b)    a person who invest funds in a financial institution other than as a shareholder;

    (c)    a policy holder under an insurance policy; and

    (d)    any other person as the corporation may determine.

    “close relation” has the meaning ascribed to that term under Financial Services Act;

    “controlling party” has the meaning ascribed to that term under Financial Services Act;

    “Corporation” means the Deposit Insurance Corporation established under section 3;

    “deposit” means monies lodged by depositor with an insured institution, whether repayable on demand, upon expiry of a given period of time, or on a fixed date, or at a time, or in circumstances agreed by, or, on behalf of the depositor making the lodgment and the insured institution receiving it;

    “deposit insurance fund” means a fund created under section 18;

    “Director General” means the Director General of the Corporation appointed under section 13;

    “excess uninsured amounts” means funds of insured clients above the insured amounts;

    “failed insured institution” means an insured institution whose licence has been revoked;

    “failing insured institution” means an insured institution whose capital, solvency or liquidity is below the minimum prescribed by the Registrar;

    “funds” means—

    (a)    deposits…