Reserve Bank of Malawi (RBM) has not disclosed if Malawi Savings Bank (MSB), whose majority stake is up for sale, has complied with the requirements set to avoid closure.
Ministry of Finance, Economic Planning and Development, through the Public Private Partnership Commission (PPPC), is set to conclude sale of between 51 and 75 percent shareholding in the bank, following failure to recapitalise it and adhere to regulations requirements by RBM.
RBM spokesperson Mbane Ngwira on Wednesday confirmed that the March 31 deadline was set for MSB to comply with the requirements or risk closure.
“All other banks have complied. It was only MSB, which was supposed to comply by March 31,” he said.
Mbane could, however, not disclose if MSB has finally complied with Basel II and Liquidity Reserve Requirement (LRR).
Ministry of Finance spokesperson Nations Msowoya said the matter was sensitive and could not be discussed anyhow.
PPPC, last Friday, announced the designation of FDH Financial Holdings Limited, the parent company of FDH Bank, as the preferred bidder to invest in MSB.
PPPC has, however, said they will negotiate with the preferred bidder to revise upwards K4.49 billion price offered.