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Malawi’s Banks Hold Cash, Stifle Growth | Malawi News
Malawi’s banks are hoarding cash, lending out less than 40% of deposits, stifling business growth and the economy. The real problem? Banks prefer lending to the government—seen as safer—because it’s flooded with government securities, leaving little for private borrowers. Plus, private businesses are viewed as riskier, with non-performing loans above regulatory norms, especially for smaller firms lacking strong balance sheets or collateral. New data shows private credit growth has sharply slowed, prompting the central bank to warn that this funding crunch is crippling investment. Experts urge…
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