The Reserve Bank Governor of Malawi (RBM), Perks Ligoya, has appealed to microfinance institutions not to overcharge their clients when providing banking services.
Speaking during the launch of Microfinance Transparency Project in the capital Lilongwe, Perks Ligoya said the central bank has learned with shock that commercial banks and other lending institutions in the country are charging exorbitant prices to their clients when providing services like loans.
“These high interests or any charge on top of the services increase poverty among the people of the country, instead of giving the clients whom the majority are from the rural low interest rates on the services rendered, the lending institutions have taken an advantage of reaping from them,” he said.
Ligoya added that the bank will act to any commercial bank and lending institutions who are abusing their clients by over charging the services.
He therefore urged the institutions and banks to inform their clients about all charges and conditions attached to the services in advance.
Source African Press Agency
African News from NetNewsPublisher.com
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