mission-vision

 Vision

 To be the most successful financial  institution in Malawi with a
 visible presence in Southern Africa.

Mission Statement

To provide the best financial services in Malawi and the region, distinguished by outstanding service, product innovation and sustained earnings growth.

Treasury Bills

Rediscounting Of Treasury Bills Reserve

Bank Of Malawi Bills, Local Registered Stocks

This involves the secondary market in Treasury Bills, RBM Bills and Local Registered Stocks. The bank rediscounts or purchases Treasury Bills, RBM Bills and LRS outright.

What are the advantages?

  • Source of immediate cash in times of cash flow problem
  • Source of extra income if there is a change in the yield.
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Guarantee By Bank

Product definition

A guarantee is a written undertaking wherein the bank agrees to make stipulated payments on a client’s behalf should they fail to fulfill or carry out specified terms of a contract.
Guarantees may also be issued in respect of the purchase of fixed property.
There are three basic types of guarantees by bank:
  • Performance guarantees
  • Bonds
  • Indemnities

Purpose

  • Allows a customer to avoid paying in advance or lodging cash cover to secure a purchase or contract.
  • Enables a customer to bid for contracts that call for guarantees

Period and Repayment

  • Up to 12 months reviewable annually for formalized  revolving  limits 
  • One-off facilities  period will be determined by the terms of contract and guarantee expiry dates
  • No fixed term is set for a performance bond. Guarantees may be continuing or for a specified period. At all times a definite or determined expiry date or a clause specifying a period of notice or withdrawal is to be included in the guarantee.
  • On receipt by the Bank of a request for payment of a performance bond, the customer’s current account is to be debited with the full amount due. The customer is to be immediately advised of the payment. Unless there are pre-existing arrangements in place to pay the exposure resulting from the payment of the performance bond, the customer is to be requested to immediately conclude arrangements to repay the exposure.

Benefits to the customer

The benefits to the customer are:
  • If cash cover is lodged with the Bank under a pledge the client will be paid interest on the investment,
  • Enables the client to bid for contracts which call for guarantees,
  • Enables the client to purchase fixed property.
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Letters Of Credit

Purpose

A documentary credit is used to facilitate the import and export of goods between countries.  The issuing bank guarantees payment independently of the importer if all terms and conditions have been met. The confirming bank adds its guarantee of payment to that of the issuing bank and importer in terms of bank and country risk.

Period and Repayment

  • Up to 12 months reviewable annually for formalized  revolving limits 
  • Up to 180 days for temporary one-off.
The period may vary as agreed by the parties.

Benefits to the customer

The benefits of letters of credit to the customer are:
  • Security
  • Guaranteed payment
  • Quick and efficient settlement
  • Flexibility
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Loan Facilities

Product definition

A Loan is a facility that is repayable in accordance with an agreed repayment term, over a period of a maximum of ten years depending on the purpose.

Purpose

To support capital expenditure, financing projects or can be used as working capital.

Period and Repayment

  • Short term loan repayable up to 24 months
  • Medium term loan repayable between 24 and 60 months
  • Long term loan repayable between 60 and 120 months
  • Reductions or repayment terms are to be discussed with the customer. No stipulated minimum applies

Benefits to the customer

The benefits to the customer are:
  • The drawing and repayment of funds is made in accordance with a prearranged schedule which is matched to the borrower’s needs.
  • Full repayment of the loan or temporary early reductions may be made at any time subject to a notice and which must be negotiated with the bank.
  • Security of knowing that finance is available for the required period.
  • Pre-planned draw downs and repayments facilitate accurate budgeting and disciplined repayments.
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Overdraft / Cash Facilities

Product definition

An overdraft is a fluctuating financing facility linked to a current account, repayable on demand. The customer is entitled to draw on their current account up to an agreed limit.

Period and Repayment

  • The overdraft facility maybe granted for a maximum of twelve months.
  • Reductions or repayment terms are to be discussed with the customer. No stipulated minimum applies. The source of repayment should however be clearly defined. Notwithstanding the above the facility is repayable on demand.

Benefits to the customer

  • Once arranged the facility is available immediately and may be used whenever required.
  • The facility remains available even when not in use.
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