RBM ADVOCATE BANKS TO OUTREACH RURAL AREAS

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.