Microfinance and Capital Markets Financial Sector Report 2010

This annual report highlights the developments in the microfinance industry and performance of the capital markets sector in Malawi for the year ended 21 December 2010. The microfinance industry continued to operate under a weak regulatory environment as a good number of microfinance institutions were conducting their business un-supervised. Despite the fact that the Financial Services Act and the Microfinance Act were promulgated in 2010; regulations and directives to support the Acts were still in draft form as at 31st December, 2010. On the capital markets front, the stock market experienced stagnancy due to the uncertainty that arose from the global financial crisis. Trading on the Malawi bourse saw a decrease in volume of 59.1 percent and 33.6 percent in terms of value.