Parliament has passed the Banking Amendment Bill, 2026, aimed at strengthening banking regulation, protecting depositors and improving the management of bank liquidation processes.
The bill, which was passed after debate and consideration of amendments, received support from various political parties, although legislators called for stronger accountability, transparency and safeguards in the exercise of regulatory powers.
Minister of Finance Joseph Mwanamveka said the legislation will ensure better protection for both local and foreign currency depositors, adding that banking interventions will be guided by the risk profile of individual institutions.
Mwanamveka explained that suspension measures for banks will not follow a one-size-fits-all approach but will be determined based on the level of risk posed by each institution.
He further clarified that funds can only be classified as unclaimed after exhaustive efforts have been made to verify ownership, a process which may take up to seven years.
During debate, members also raised concerns over the powers given to the Registrar and the Reserve Bank of Malawi (RBM), calling for increased transparency, proper records of claimed funds and regular reporting to Parliament to strengthen oversight.
The House also discussed the proposed 45-day period for processing depositor claims, with some members calling for shorter timelines. However, it was noted that the period would still be an improvement compared to previous cases where depositors waited years to access their money.
Following approval of the second reading, the bill proceeded through the legislative process and was passed by Parliament after committee consideration. The new law is expected to enhance confidence in the banking sector while safeguarding the rights of depositors and shareholders.
