RESERVE BANK OF MALAWI

CHAPTER 44:02
RESERVE BANK OF MALAWI

ARRANGEMENT OF SECTIONS

    SECTION

PART I
PRELIMINARY

    1.    Short title

    2.    Interpretation

PART II
THE RESERVE BANK OF MALAWI

    3.    Establishment of the Bank

    4.    Objectives of the Bank

    5.    Independence of the Bank

    6.    Capital and reserves

PART III
ORGANIZATION AND ADMINISTRATION

    7.    Board of directors

    8.    Persons not eligible for appointment as directors

    9.    Resignation of directors

    10.    Termination of appointment of director

    11.    Procedure for removal of a director

    12.    Filling of vacancy of a director

    13.    Meetings of the Board

    14.    Disclosure of interest

    15.    Committees of the Board

    16.    Governor and Deputy Governors

    17.    Qualifications for appointment

    18.    Executive duties of Governor and Deputy Governors

    19.    Replacement of the Governor or Deputy Governor

    20.    Appointment of officers and staff of the Bank

    21.    Computation of remuneration

    22.    Protection of officers

    23.    Code of Conduct

PART IV
POWERS AND FUNCTIONS OF THE BANK

Division 1
Primary Powers and Functions

    24.    Primary functions of the Bank

    25.    Primary powers of the Bank

Division 2
General Powers and Functions

    26.    General powers and functions of the Bank

    27.    Prohibited activities

Division 3
Monetary Functions

    28.    Monetary Policy Committee

    29.    Monetary functions

    30.    Credit operations

    31.    Rediscount rate

    32.    Credit ceilings

    33.    Open market operations

    34.    Use of instruments

    35.    Reserve requirements

    36.    Cash reserves

    37.    Interest to financial institutions

Division 4
Relations with Government

    38.    Banker, fiscal agent and advisor to Government

    39.    Short-term advances to Government

    40.    Issue and management of Government securities

    41.    Agent of Government

    42.    Government to consult the Bank on Government loans

Division 5
Relations with Other Financial Institutions

    43.    Banker to other banks

    44.    Clearing systems

    45.    Lender of last resort to financial institutions

    46.    Cooperation with financial institutions

PART V
LEGAL TENDER

    47.    Unit of Malawi currency

    48.    Sole right to issue legal tender

    49.    Provisions for issue of Malawi currency

    50.    Denomination, description and form of notes and coins

    51.    Withdrawal

    52.    Lost and damaged currency

    53.    Exemption from stamp duty

    54.    Offences relating to bank notes and coins

PART VI
FOREIGN ASSETS

    55.    International value of Malawi currency

    56.    Foreign assets and reserves

    57.    Trade in foreign currency

    58.    Foreign exchange management

PART VII
ACCOUNTS AND STATEMENTS

    59.    Annual accounts

    60.    Audit

    61.    Establishment of the internal audit department

    62.    Accounts, annual reports and publication thereof

    63.    Determination of net results of the Bank

    64.    General Reserve Fund and appropriation of profits

PART VIII
MISCELLANEOUS

    65.    Rules, directives, etc.

    66.    Regulations

    67.    No taxation of profits

    68.    Protection of Bank assets

    69.    Prohibited banking names

    70.    Confidentiality

    71.    Role in development

    72.    Discharge of duties and powers

    73.    Transition

    74.    Repeal and savings

        FIRST SCHEDULE

        SECOND SCHEDULE

3 of 2019
G.N. 3/2019

    An Act for the establishment of the Reserve Bank of Malawi to formulate and implement price and financial stability policies; to confer and impose on the Reserve Bank of Malawi certain functions and powers; to provide for matters related to banking, currency and coinage; and for matters connected therewith and incidental thereto

PART I
PRELIMINARY

1.    Short title

    This Act may be cited as the Reserve Bank of Malawi Act.

2.    Interpretation

    In this Act, unless the context otherwise requires—

    “agency” means any institution, other than a bank, established or appointed under section 49;

    “Bank” means the Reserve Bank of Malawi established under section 3;

    “bank” means a company licensed as a bank under the Banking Act;

    “Board” means the Board of Directors of the Bank established under section 7;

    “close relative” means mother, father, sister or brother;

    “Code of Conduct” means the code of conduct provided for under section 24 and set out in the First Schedule;

    “controlling party” has the meaning assigned thereto in the Financial Services Act;

    “convertible currency” means any currency which is freely negotiable and transferable in international exchange markets at exchange rates consistent with the Articles of agreement of the International Monetary Fund in force from time to time;

    “deposit liabilities” means liabilities arising from demand, time and savings deposits;

    “Deputy Governor” means a Deputy Governor of the Bank appointed under section 16;

    “director” in relation to the Bank means a member of the Board and includes the Governor and the Deputy Governors;

    “external currency” means any currency, other…