The government of Malawi is selling controlling stakes in Malawi Savings Bank (MSB) and Indebank Malawi, reports Reuters.
The government owns about 70% of its shares in the two struggling banks. The Public Private Partnerships Commission (PPPC) has urged strategic investors to purchase the stakes.
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However, the Commission did not disclose the size of the stakes up for sale or the amount for which the stakes will be sold.
MSB is reportedly being weighed down by bad loans, and needs $48.3m (MWK 23.7bn) in capital and liquidity by June to comply by Basel II financial and regulatory norms.
The agency said, "The decision to recapitalise the two institutions has been motivated by the desire to strengthen their financial and operational capabilities in a competitive environment."
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