01939cas a2200253 a 4500 AALejournalIMF001821 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842302 1018-5941 BD-DhAAL BD-DhAAL Chirwa, Ephraim. Financial Reforms and Interest Rate Spreads in the Commercial Banking System in Malawi / Ephraim Chirwa, Montfort Mlachila. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This study investigates the impact of financial sector reforms on interest rate spreads in the commercial banking system in Malawi. The financial reform program commenced in 1989 when both the Reserve Bank Act and the Banking Act were revised with the easing of entry requirements into the banking system, and indirect monetary policy instruments were subsequently introduced in 1990. The adoption of a floating exchange rate in 1994 marked the end of major policy reforms in the Malawian financial sector. Using alternative definitions of spreads, our analysis shows that spreads increased significantly following liberalization, and panel regression results suggest that the observed high spreads can be attributed to high monopoly power, high reserve requirements, high central bank discount rate and high inflation. Mode of access: Internet Mlachila, Montfort. IMF Working Papers; Working Paper ; No. 2002/006 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/006/001.2002.issue-006-en.xml IMF e-Library