Malawi Parliament passes banking Amendment Bill to strengthen protection against bank failures

LILONGWE-(MaraviPost)-Parliament has passed the Banking Amendment Bill, 2026, aimed at strengthening Malawi’s banking sector by providing more options for handling failing banks and improving the legal framework for early intervention and bank resolution.

The amendment seeks to address gaps in the existing law, which authorities say is inadequate and requires major reforms to align with international best practices in managing banking crises.

Presenting the Bill in Parliament, Minister of Finance Joseph Mwanamveka said banks are highly vulnerable to loss of public confidence and risks that can spread across the financial system, making it necessary to strengthen mechanisms that protect depositors and maintain financial stability.

“Banks are highly vulnerable to loss of confidence and contagion risks such that there is a need to take into account broader public policy and financial stability objectives in providing protection to persons that deal with the banks,” said Mwanamveka.

The amended law will broaden the legal powers and tools available for resolving troubled banks while introducing procedures aimed at ensuring timely intervention before financial challenges worsen.

The government believes the reforms will help safeguard depositors, strengthen confidence in the banking sector and promote a more stable financial system.

The move has received support from Rumphi Central legislator Matthews Mtumbuka, who commended the Ministry of Finance for introducing the legislation, saying it will help ensure that unclaimed funds are properly managed, protected and put to productive use.

Mtumbuka said during his 10-year experience serving on boards of various banks, he was surprised by the large amounts of money that remained unclaimed.

However, he stressed the need for strong procedures to ensure that rightful owners can easily access their money whenever they come forward.

He said the system should balance accountability in managing unclaimed funds while protecting the rights of citizens who may later claim the money.

Lloyd M’bwana

I’m a Lilongwe University of Agriculture and Natural Resource (LUANAR)’s Environmental Science graduate (Malawi) and UK’s ICM Journalism and Media studies scholar. Also University of Malawi (UNIMA) Library Science Scholar. I have been The Malawi Country Manager and duty editor for the Maravi Post since 2019. My duty editor’s job is to ensure that the news is covered properly, that it is delivered on time, and that it is created to the standards set out in the editorial guidelines of the Maravi Post.