During the Reserve Bank of Malawi (RBM) Credit Awareness Week, Small and Medium Enterprises (SMEs) called for interest capping, a topic has been ignored for the most part of this year. They proposed that capping should implemented, citing that small businesses are subjected to similar interest rates and lending conditions as that of big businesses.

 Since the bill to cap interest rates was proposed in Parliament, various firms have tussled over the passing of the bill. “The interest capping bill will crash the economy” said the Bankers Association of Malawi (Bam). On the other hand, the Indigenous Businesses Associations of Malawi (Ibam) noted that the bill will protect the innocent borrowers from exploitation from banks”

In response to the SMEs, RBM senior analyst for payment systems Susan Matita Matita said that capping interest rates would not be ideal in the current liberalised economy. On the other hand, Parliament did not approve of the bill while Malawi Confederation of Chambers of Commerce and Industry (MCCCI) also objected to the move, saying interest rate capping could crash the banking sector.