Commercial banks have been touted as a resilient feeder of finance into all sectors of the economy and anchor of sustainable growth.
Reserve Bank of Malawi Director of Capital Market and Microfinance Supervision Chitani Chigumula said this on Wednesday when he opened a two-day Bankers Annual Conference for compliance officers.
In his keynote address, Chigumula said commercial banks play a pivotal role in keeping other sectors of the economy afloat in volatile times.
He said in the ever-changing business landscape, coupled with market volatilities, resilience is a critical prerequisite for financial institution performance and its sustenance.
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“The horizon is long, not short. Profoundly, we cannot talk about resilience without talking about compliance. Compliance is relevant to the notion of resilience; as strong compliance processes are a critical step towards achieving resilience and stability,” Chigumula said.
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He then challenged banks to strengthen the integration of resilience in strategy processes.
He said it is time to move out of a reactive, crisis response mode towards integrating compliance and resilience on a permanent basis by choice.
Bam Compliance Committee Chairperson Vitumbiko Gubuduza hailed the central bank for its unwavering intervention in ensuring soundness of the banking sector.
Gubuduza said there was a need for resilience as the role of the financial services sector remained pivotal.
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“The challenges we may face can be quite huge but the support we receive from RBM is unparalleled,” Gubuduza said.
