Reserve Bank of Malawi (RBM) Governor George Partridge has challenged authorised dealer banks to reduce their reliance on government securities, develop products tailored to private sector needs and take calculated risks that stimulate business growth.
Partridge made the remarks on Thursday during his inaugural engagement with chief executive officers of commercial banks under the Bankers Association of Malawi (Bam).
His call comes amid mounting criticism that commercial banks are allocating a disproportionate share of loanable funds to the government at the expense of productive sectors of the economy.
During the meeting Partridge urged banks to fully embrace their role as catalysts for economic expansion by increasing financing to key sectors such as agriculture, manufacturing, tourism, mining and innovation.
The former Minister of Industrialisation, Business, Trade and Tourism reaffirmed the central bank’s commitment to maintaining macroeconomic stability and advancing a market-led economy as Malawi navigates a challenging economic environment.
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Bam President Philip Madinga assured the central bank of the association’s support in efforts aimed at driving economic recovery and growth.
He referenced previous engagements with the central bank’s leadership, including an investment symposium focused on financing strategic sectors, and stressed the importance of sustaining momentum toward private sector-led growth.
Madinga, who is also chief executive for Standard Bank Malawi, acknowledged improvements in regulatory responsiveness and welcomed further reviews of regulations aimed at fostering innovation and expanding access to credit.
He underscored the need for clear and timely communication on policy reforms to minimise market uncertainty and enable banks to position themselves effectively to support credit growth.
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Madinga also expressed optimism about opportunities for banks to participate in financing infrastructure projects, particularly in light of recent policy decisions aimed at strengthening revenue mobilisation.
