Minister of Finance, Economic Planning and Decentralisation, Joseph Mwanamvekha, has presented the Banking (Amendment) Bill, No. 9 of 2026, to Parliament, proposing tougher regulatory measures aimed at protecting depositors and reinforcing stability within the country's financial sector.
Under the proposed legislation, the Registrar of Financial Institutions would be granted expanded powers to intervene where a bank, bank holding company, or its directors and managers are implicated in financial crime, contribute to market instability, or engage in unsafe practices that could put depositors at risk.
The Registrar would be authorised to order a range of remedial actions, including restricting a bank's business operations, suspending directors, amending licence conditions, and compelling restitution where warranted.
The bill also introduces a formal review and appeal mechanism. Any party aggrieved by a decision of the Registrar would be entitled to request a review within seven days, with the option to escalate the matter to the Financial Services Appeals Committee within 21 days should they remain dissatisfied with the outcome.
Additionally, the legislation would empower the Registrar to impose a moratorium on payments by a distressed bank and suspend legal proceedings against the institution, with the intention of protecting the interests of depositors and creditors during periods of regulatory intervention.
Mwanamvekha said the proposed amendments are designed to strengthen regulatory oversight of the banking sector, bolster public confidence in the financial system, and ensure supervisory action is carried out swiftly, transparently and with appropriate accountability.
