Local incorporation is required for carrying out banking activities. Foreign bank branches are not allowed.
"Section 2. Legal form, share capital, legal reserve and publication of information
Article 101 - CEs take on the legal form of a public limited company
Pluripersonal. However, CAs approved as MFIs may adopt other legal forms, as provided for in the regulations on microfinance. ECs establish their registered office on the territory of the Republic of Madagascar.[...]" (Law n°2020-011 on the banking law [google translation])
------------------------
Previously
------------------------
"Art. 9.- Credit institutions with their headquarters abroad are authorized to open offices in Madagascar with information, liaison or representation activities. The opening of these offices is subject to the approval of the Banking and Financial Supervision Commission.
[...]
Art. 16.- The exercise of the credit establishment activity, as defined in Article 3 of this law, is subject to the approval of the Banking and Financial Supervision Commission established in Chapter 1 of Title III of this law.
Art. 17.- Credit institutions are approved as territorial or extraterritorial banks, financial institutions, mutual financial institutions under the Ordinance No. 93-026 of May 13, 1993 and subsequent texts or financial institutions specialized.
1. Only banks and mutual financial institutions are generally authorized to receive funds from the public on demand or within a two-year term. Extra-territorial banks can only receive foreign currency deposits from non-residents in meaning defined by the exchange regulations in force.
Financial institutions and specialized financial institutions can only receive funds from the public on an ancillary basis, under the conditions defined by the Banking and Financial Supervision Commission. This activity must, in any case, be a direct corollary of the main activities of the establishment and remain of marginal importance with regard to it. Development banks cannot receive funds from the public on demand or within a two-year term.
2. Territorial banks can carry out all banking operations. Extraterritorial banks carry out their activity under the conditions set by decree, taken after consulting the Banking and Financial Supervision Commission. Under the conditions and within the limits set by the above-mentioned Order No. 93-026, mutual financial institutions are authorized to receive deposits, grant credits and act as guarantors for their members.[...]" (Law No. 95-030 relating to the activity and control of credit institutions [google translation])
Law n°2020-011 on the banking law [google translation]
Law No. 95-030 relating to the activity and control of credit institutions [google translation]
[<a href="https://www.assemblee-nationale.mg/wp-content/uploads/2020/09/Loi-n%C2%B02020-011_loi-bancaire.pdf">Law</a>],[<a href="https://www.mef.gov.mg/assets/vendor/ckeditor/plugins/kcfinder/upload/files/loi95030.pdf">Law</a>]