Malawi Savings Bank

Last updated

Malawi Savings Bank(MSB), was a commercial bank in Malawi. It was licensed as a commercial bank by the Reserve Bank of Malawi, the central bank and national banking regulator. [1] Prior to 2015 MSB was a wholly owned parastatal company. MSB was acquired by FDH Bank on 3 July 2013. [2]

A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.

Malawi Country in Africa

Malawi, officially the Republic of Malawi, is a landlocked country in southeast Africa that was formerly known as Nyasaland. It is bordered by Zambia to the northwest, Tanzania to the northeast, and Mozambique on the east, south and west. Malawi is over 118,000 km2 (45,560 sq mi) with an estimated population of 18,091,575. Lake Malawi takes up about a third of Malawi's area. Its capital is Lilongwe, which is also Malawi's largest city; the second largest is Blantyre, the third is Mzuzu and the fourth largest is its old capital Zomba. The name Malawi comes from the Maravi, an old name of the Nyanja people that inhabit the area. The country is also nicknamed "The Warm Heart of Africa" because of the friendliness of the people.

Reserve Bank of Malawi

The Reserve Bank of Malawi is the central bank of Malawi established in the year 1968 located in Lilongwe. The current governor is Dalitso Kabambe

Contents

History

In 2013, following MSB's inability to meet liquidity requirements, both the International Monetary Fund and the World Bank recommended that the financial institution be sold. The Reserve Bank of Malawi, in its 2014 report, said that MSB needed US$48 million in new capital by June 2015 to avoid it being de-licensed by the central bank. [2]

International Monetary Fund International organisation

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." Formed in 1944 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now plays a central role in the management of balance of payments difficulties and international financial crises. Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money. As of 2016, the fund had SDR477 billion.

The World Bank is an international financial institution that provides loans to countries of the world for capital projects. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group.

When the Public Private Partnership Commission advertised for a strategic investor to buy a controlling stake in MSB, FDH Bank, the only bidder, offered US$12 million for a 75 percent stake. The Malawian parliament and civil society organisations protested the then proposed sale. On 3 July 2015, the government sold 75 percent of MSB’s shares of stock to FDH Bank for US$21.1 million. [2]

FDH Bank, also FDH Bank Limited, is a commercial bank in Malawi. It is one of the commercial banks licensed by the Reserve Bank of Malawi, the central bank and national banking regulator.

Stock financial instrument

The stock of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly known as "stocks." A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the stockholder to that fraction of the company's earnings, proceeds from liquidation of assets, or voting power, often dividing these up in proportion to the amount of money each stockholder has invested. Not all stock is necessarily equal, as certain classes of stock may be issued for example without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of shareholders.

Merger

In 2016, FDH Financial Holdings Limited, the parent company of FDH Bank, began the process of merging the two institutions, with the retrenchment of some of the employees. [3]

The new owners integrated the operations of MSB with those of FDH Bank. During the process, FDH Money Bureau Limited, became a 100 percent subsidiary of FDH Financial Holdings Limited. As of April 2017, the government of Malawi owned 25 percent of FDH Bank Limited while FDH Financial Holdings Limited owned the remaining 75 percent. [4]

See also

Economy of Malawi

The economy of Malawi is predominantly agricultural, with about 80% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries. In 2017, agriculture accounted for about one-third of GDP and about 80% of export revenue. The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. The government faces strong challenges: to spur exports, to improve educational and health facilities, to face up to environmental problems of deforestation and erosion, and to deal with the problem of HIV/AIDS in Africa.

Related Research Articles

Citigroup American multinational investment bank and financial services corporation

Citigroup Inc. or Citi is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998; Travelers was subsequently spun off from the company in 2002. Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries.

UniCredit Italian global banking and financial services company

UniCredit S.p.A. is an Italian global banking and financial services company. Its network spans 50 markets in 17 countries, with more than 8,500 branches and over 147,000 employees. Its strategic position in Western and Eastern Europe gives the group one of the region's highest market shares. The company is a component of the Euro Stoxx 50 stock market index.

Spire Bank, formerly known as Equatorial Commercial Bank(ECB), is a commercial bank in Kenya, the largest economy in the East African Community. It is licensed by the Central Bank of Kenya, the central bank and national banking regulator.

Before Uganda's independence in 1962, the main banks in Uganda were Barclays ; Grindlays, Standard Bank and the Bank of Baroda from India. The currency was issued by the East African Currency Board, a London-based body. In 1966, the Bank of Uganda (BoU), which controlled the issue of currency and managed foreign exchange reserves, became the central bank and national banking regulator. The government ownedUganda Commercial Bank and the Uganda Development Bank were launched in the 1960s. The Uganda Development bank was a state-owned development finance institution, which channeled loans from international sources into Ugandan enterprises and administered most of the development loans made to Uganda.

Lloyds Banking Group British financial institution

Lloyds Banking Group plc is a major British financial institution formed through the acquisition of HBOS by Lloyds TSB in 2009. The Group's history stems from the founding in 1695 by the Parliament of Scotland of the Bank of Scotland, which is the second oldest bank in the United Kingdom. The Group's headquarters is located at 25 Gresham Street in the City of London and its registered office is on The Mound in Edinburgh. Lloyds Banking Group's activities are organised into: Retail Banking ; Commercial; Life, Pensions & Insurance; and Wealth & International. Lloyds' has extensive overseas operations in the US, Europe, the Middle East and Asia.

Orient Bank is a commercial bank in Uganda which is licensed by the Bank of Uganda (BOU), the central bank and national banking regulator.

KCB Group Limited, also known as the KCB Group, is a financial services holding company based in the African Great Lakes region. The Group's headquarters are in Nairobi, Kenya, with its subsidiaries being KCB Bank Kenya Limited, KCB Bank Burundi Limited, KCB Bank Rwanda Limited, KCB Bank South Sudan Limited, KCB Bank Tanzania Limited, and KCB Bank Uganda Limited.

Opportunity Bank Uganda Limited (OBUL), is a credit institution in Uganda. In November 2011, the institution rebranded as Opportunity Bank Uganda.

First Capital Bank Limited, commonly known as First Capital Bank, is a commercial bank in Malawi. It is licensed by the Reserve Bank of Malawi, the central bank and national banking regulator.

Prime Bank Kenya (PBKL) is a commercial bank in Kenya, licensed and supervised by the Central Bank of Kenya (CBK), the central bank and national banking regulator.

NBS Bank Limited, commonly referred to as NBS Bank, is a commercial bank in Malawi. It is licensed as a commercial bank, by the Reserve Bank of Malawi, central bank and national banking regulator.

National Bank of Malawi(NBM), is a commercial bank in Malawi. The bank is one of the commercial banks licensed by the Reserve Bank of Malawi, the central bank and national banking regulator.

Indebank was a commercial bank in Malawi. It derived its name from Investment and Development Bank of Malawi Limited, the original name at the time of its founding. Indebank is one of the commercial banks licensed by the Reserve Bank of Malawi, the national banking regulator.

Letshego Bank Tanzania Limited, commonly known as Letshego Bank is a commercial bank in Tanzania, licensed by Bank of Tanzania, the central bank and national banking regulator.

Afrasia Bank Zimbabwe Limited, also referred to as Afrasia Bank Zimbabwe, is a commercial bank in Zimbabwe. It is one of the regulated banking institutions licensed by the Reserve Bank of Zimbabwe, the country's central bank and national banking regulator.

Britam Holdings Limited, previously known by as British-American Investments Company, is a diversified financial services group and is listed on the Nairobi Securities Exchange. The group offers a wide range of financial products and services in insurance, asset management, property, and banking in the African Great Lakes region.

The Standard Bank of Malawi is a commercial bank in Malawi. The bank had 27 branches across Malawi and a workforce of 885, as of December 2016. It is licensed by the Reserve Bank of Malawi, the central bank and national banking regulator.

Kenya Women Microfinance Bank, formerly Kenya Women Finance Trust or KWFT, is a deposit-taking microfinance bank in Kenya, the largest economy in the East African Community.

References

  1. ↑ Reserve Bank of Malawi (23 April 2018). "List of Banks & Other Financial Institutions Supervised by the Reserve Bank of Malawi". Lilongwe: Reserve Bank of Malawi . Retrieved 23 April 2018.
  2. 1 2 3 Masina, Lameck (7 August 2015). "Controversy as government sells Malawi Savings Bank". London: AfricanBusinessMagazine.com. Retrieved 23 April 2018.
  3. ↑ MlawiNewsNow (7 April 2016). "250 At Malawi Savings Bank, FDH Employees Lose Jobs". MalawiNewsNow.com. Retrieved 23 April 2018.
  4. ↑ Nkawihe, Maurice (4 April 2018). "FDH Insists On K1.2 Billion Refund Over Malawi Savings Bank Deal - Bank Injects K6.6 Billion Capital". Nyasa Times . United Kingdom. Retrieved 23 April 2018.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.