The Reserve Bank of Malawi (RBM) has announced that it will not proceed with compensating Finance Bank of Malawi (FBM) immediately, following a Supreme Court of Appeal ruling which ordered RBM to compensate FBM for business losses dating back to 2005. This decision comes amid an ongoing legal struggle that has persisted since the central bank revoked FBM's license. While the court's ruling represents a significant legal win for FBM, the RBM's stance indicates that the practical implications of the case are still unresolved.

In a written statement, RBM spokesperson Boston Banda emphasized the importance of a detailed compensation assessment before any payments could be made to FBM. This assessment is seen as a necessary step before RBM can move forward, effectively prolonging the process and leaving FBM in a state of uncertainty. The ruling by the Supreme Court marks a pivotal moment in a protracted conflict between the two financial entities, but the RBM's compliance appears contingent on this further evaluation.

The case underscores broader issues within Malawi's banking sector and highlights the complexity of legal conflicts involving financial institutions. The delay in compensation raises questions about the RBM's priorities and the impact of such legal battles on the operational stability of banks in the country. With the ramifications of this ruling yet to unfold, stakeholders and observers will be closely monitoring the next steps in this prolonged dispute.