RBM ADVOCATE BANKS TO OUTREACH RURAL AREAS
By Frank
Kauteka Tembo
The Reserve
Bank of Malawi (RBM) says it will do its best to regulate the banks in country
so that they give quality services to people especially in the rural areas.
The RBM Director, Bank Supervision Eldin
Mlelemba said this at the official launch of Ned bank branch in Mzuzu city on
Friday.
Mlelemba said the coming of the Ned bank
in the Northern region will increase the competition amongst the banks in financial
services, a development which will enhance the economic standard of people in
the region.
“Now the more the financil income we
have the better because it gives people the choice to get the services but
again banks are an important player in an development of the economy so their
coming in the North means reaching out to people in this region which will
provide opportunity for people to save and borrow and use such loans for some
productive services,” said Mlelemba.
He then promised to continue providing
check balances on the performance of the banks in favor of the local people in
the country.
“To ensure that banks in the country are
offering the best services to the customers we [RBM] do have certain
regulations that we give to banks and those regulations we set standards for
certain things for example, a standard for bank premises, a bank premise should
have the ambience of the bank so that people should come with their money and
be convinced that their money is safe,” said Mlelemba.
Mlelemba added that 80% of adults do not
access banking services therefore; the RBM is taking the lead in promoting
programs to ensure that more adults should use banking services.
In his remarks,
Ned bank Board Chair Maziko Phiri said the Ned bank will work hand in hand with
RBM in order to make sure that the current 80 percent of adult who don’t have
access to banking services should have the access.
He said the opening of new branch in
Mzuzu is one way of promoting the move adding that the bank will continue reaching various areas
however, he said extending branches is costly hence the bank will take a step
one at a time.
