Lawyers from the country’s financial service institutions have been challenged to remain efficient and effective in their contribution to national economic growth.
This was the underpinning message at a two-day training workshop in Mangochi, organised by the Reserve Bank of Malawi (RBM).
The lawyers, who were drawn from various financial institutions, were drilled in compliance matters in the financial sector, Malawi Stock Exchange market trends and the Malawi exchange control regime among other areas.
Making his key note address, RBM General Counsel and Secretary, Samuel Malitoni, said the topics were chosen considerating some of the challenges faced by the sector.
He said the lawyers are oftentimes requested to offer guidance on forex repatriation for a foreign entity wishing to set up business in Malawi; hence, the need to be exposed to the trends.
“Sometimes guidance is sought on how best to secure a lending. In the recent past, we have all witnessed how much financial institutions have lost through lending transactions which were deemed to have been secured,” Malitoni said.
The workshop also tackled compliance challenges facing the financial industry in the country.
According to Malitoni, the central bank’s interest is to ensure that there is legal compliance.
“Compliance comes with a cost. I therefore look forward to discussions and suggestions on how we can strike a proper balance between costs and compliance so that we do not undermine our economy,” he said.
One of the participants, National Bank of Malawi’s Senior Legal Manager, Mercy Mlele, said the workshop was beneficial as it looked at various aspects of the financial sector.
She said, as financial lawyers, they are now able to understand issues of loan documentation and security realisation among other areas.
“Loan documentation and security realisation are critical as most banks lose money when some documents are not in order. So, the training would help us in terms of what documents to look for and how to realise security,” she said.
Today’s top business story: Top Commercial Banks In Malawi
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