National Bank of Malawi gets license for SME development bank

post was last updated: November 28, 2018

By Taonga Sabola:

The Reserve Bank of Malawi (RBM) has given National Bank of Malawi (NBM) a licence to establish a small and medium enterprises (SME) development bank.

RBM Governor, Dalitso Kabambe, disclosed this during the 2018 Economics Association of Malawi (Ecama) Annual Conference.

“We congratulate National Bank of Malawi for establishing the NB SME Development Bank, which will give medium to long term loans to small and medium scale businesses at concessional terms from Commercial Bank.

“This is quite commendable and encouraging,” Kabambe said.

NBM Head of Corporate Affairs and Strategy, Wilkins Mijiga, said Tuesday SME development has been at the heart of his bank for a long time.

Mijiga said that is the reason NBM bought Indebank in 2016 to turn it into a development bank for SMEs.

He could, however, not shed more details about the bank, saying finer details will be made available to Malawians in due course.

News of NB SME Development Bank comes at a time the government is today launching the Malawi Agricultural and Industrial Investment Corporation (Maiic).

Maicc is a development finance institution (DFI) which combines the concept of development bank and proposed agriculture bank.

Maiic Steering Committee Head, Misheck Esau, who is also CDH Investment Bank (CDHIB) Managing Director, told reporters that the new institution, which is not a bank, with a seed capital of $25 million, is a government initiated but private sector led development finance entity that will be a vehicle for spearheading private sector development in Malawi.

Let us know what you think of this update and remember to add us on our facebook and follow us on our twitter. Make sure to come back daily for more Malawi business news updates.

Quick Links: Malawi Banking News | Malawi Technology News | Download Business eBooks | Ten Signs You Are An Entrepreneur | What is a Managing Director?

Today’s top business story: Top Commercial Banks In Malawi

Source link