THE Malawian Supreme Court has ordered the Reserve Bank of Malawi to pay damages for closing Finance Bank Malawi in 2005. The Court has also ruled that the suspension of Finance Bank of Malawi’s foreign currency operations and the revocation of its banking licence in May 2005 were undertaken in breach of the constitution. In May 2005, the Reserve Bank of Malawi (RBM) suspended the foreign currency operations of Finance Bank of Malawi Limited (FBM). Subsequently, FBM’s banking licence was revoked by Malawi’s Finance Minister, following recommendations from RBM. The Reserve Bank of Malawi then initiated action in the High Court (Commercial Division) to seek declaratory relief and other remedies related to the regulatory measures taken against FBM. In response,...