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Financial Services (Licensing of Development Finance Institutions) Directive, 2018
The Financial Services (Licensing of Development Finance Institutions) Directive, 2018 was issued by the Registrar of Financial Institutions in Malawi. This directive outlines the licensing requirements for development finance institutions and provides guidance on the objectives, eligibility criteria, permissible activities, and paid-up capital requirement.
Purposes and Objectives
Purpose
The primary objective of this directive is to establish a framework for licensing development finance institutions, specifying the information required by the Registrar in assessing licensing applications, and ensuring that license applications are evaluated objectively and consistently in a timely manner.
Key Objectives
- Establish licensing requirements for development finance institutions
- Specify information required by the Registrar in assessing licensing applications
- Ensure objective and consistent evaluation of license applications in a timely manner
Eligibility to Apply
Only body corporates (companies) are eligible to apply for a development finance institution licence.
Permissible Activities
Development finance institutions may engage in, but not limited to, the following activities:
- Making available medium and long-term finance for economic development
- Participating in equity in medium and long-term investments
- Guaranteeing medium and long-term loans and other financial obligations
- Mobilizing funds from sources within and outside the country to finance medium and long-term investments
- Providing technical assistance and advisory services for promoting sustainable economic development
- Buying and selling securities
- Studying and promoting medium and long-term investment opportunities
- Administering special funds as entrusted
Paid-up Capital Requirement
The paid-up capital requirement for a proposed institution shall be Malawi Kwacha equivalent of US$50,000,000.