Home BusinessBanking Malawi: Reserve Bank of Malawi Justify Rebuffing Mpatsa On Mybucks 49 Percent Stake

Malawi: Reserve Bank of Malawi Justify Rebuffing Mpatsa On Mybucks 49 Percent Stake

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The Reserve Bank of Malawi (RBM) stands by its ground that it turned down Mpatsa Holdings Limited’s bid to buy 49 percent stake in MyBucks Banking Corporation (Malawi), formerly New Finance Bank, due to lack of liquid assets, saying the application did not satisfy the requirements of financial services laws.

The response from RBM comes after Nyasa Times wanted to find out if the refusal to approve the application was not in line with the Tonse Alliance led government’s agenda of creating an enabling environment for local participation, as contended by the prospective shareholder, Mpatsa Holdings.

Mpatsa Holdings chairperson Jimmy Koreia-Mpatsa expressed disappointment with the criteria the central bank used to turn down the bid, saying it is “in a way, a contradiction to the new administration’s policy of encouraging local empowerment and job creation”.

But RBM spokesperson Onelie Nkuna told Nyasa Times she could not respond to Mpatsa Holdings’s assertion, saying “under the law, the Registrar of Financial Institutions office deals with financial institutions and not individuals per se”.

She said applications received by the Registrar’s office from commercial banks are different and not similar but subjected to the same requirements.

“The Registrar of Financial Institutions office considers a number of factors in assessing the suitability of a prospective shareholder to acquire a significant stake in a bank (please check on the website with regard to the requirements).