The International Financial Reporting Standard (IFRS) 9, which has been introduced by the International Accounting Standards Board (IASB), will help to improve Malawi’s banking sector.
This was disclosed during the opening of three-day training in Blantyre which has been organised by the Institute of Bankers (IOB).
IOB Chairman, who is also FDH Bank Managing Director, Eric Ouatarra, said as Malawi is part of the global community, the IFRS 9 training will prepare the participants to adopt banking standards recognised globally.
“IFRS 9 will critically impact the banking and insurance sectors. It is very stringent in monitoring, so we have to be prepared,” Ouatarra said.
Ouattara also said that the new system will replace the current IFRS for financial institutions and bring about more regulation.
“When banks and the insurance sectors are regulated, we do better in protecting the money we get from the public and private sectors,” he added.
IOB is supported by the Technical Entrepreneurial and Vocational Educational and Training Authority (Teveta). Ouatarra said Teveta will also assist in ensuring that people in remote areas also access banking services.
Teveta Regional Service Centre Manager for the South, Elliot Mulanje, said the organisation saw it fit to work hand in hand with IOB in order to serve Malawians.
“As Teveta, we are always keen and interested to assist and address the skills gap in society through training. This new system is promoting what, we as Teveta, are promoting. We want our accounting standards to be at par with the rest of the world,” Mulanje said.
“We want these gaps to be filled through training in order to ensure that banks offer good quality services to their clients,” he said.
Thirty-two participants are attending the training and have been drawn from the insurance and banking sectors.