Financial reforms and interest rate spreads in the commercial banking system in Malawi - a review

Abstract

The specific objective of the paper was to carry out an empirical investigation on the impact of financial sector reforms (pre-and-post liberalization periods) on interest rate spreads in the commercial banking system of the Malawian economy. The paper posits that pre-liberalization period of the Malawian financial sector was predominantly under the control regime. This policy regime also encompassed the country's monetary policy design and management. specifically, the ceiling on interest rates, credit limits, and the specification of a fixed exchange rate regime, among others.