The Reserve Bank of Malawi (RBM) has given a licence to microfinance network, Foundation for International Community Assistance (FINCA), to operate as a bank in the country.
Speaking during the ceremony of issuing the licence to FINCA, Deputy Governor and Supervisor of Financial Institutions at RBM Grant Peter Kabango urged the bank to be transparent to customers.
“Our call to our banking institutions in the country is that they should be transparent to their customers, once they step into a banking hall to get a loan they should know the interest so that they can be managing to pay back the loan and interest,” said Kabango.
Reacting to the call, FINCA president Rupert Scofield said the bank has been geared to lead the banking industry in Malawi.
FINCA, which is an international non-profit organization, was established in 1984 with its headquarters in Washington in United States of America to facilitate village banking methodology in microcredit.
In Malawi, FINCA was established in 1994 to support low-income small entrepreneurs in all districts in Malawi via its 20 branches.
In addition to its famous village banking model, it also offers group and individual loans.