BSB mauls non-guaranteed loans

OARABILE MOSIKARE
Correspondent | Thursday September 25, 2008 00:00

Speaking at the official opening of the first BSB branch here last Friday, the Assistant Minister of Finance and Development Planning Guma Moyo said the opening of the branch was a demonstration of a broader commitment by the bank to promote the development of Botswana's financial sector.

He said the BSB prided itself as one of the oldest financial institutions in Botswana. 'Its origins date as far back as 1911 in South Africa where it was administered within the Post and Telecommunications Service of South Africa and Bechuanaland under the colonial administration,' Moyo said.

The Minister said the core mandate of BSB was to promote a savings habit among Batswana. 'The opening of the Francistown branch comes at a time when public outcry (against) cost of banking services is at its peak,' he said. 'In this regard, the branch will provide a wide array of products and relieve customers in the northern region (of Botswana) of the burden of going all the way to Gaborone for certain limits requiring head office approval.' BSB had always provided convenient means of pooling domestic savings and availing loan facilities to its clients, especially those in the low-income bracket and the unbanked. Moyo, who is also the Member of Parliament for The Tati East, explained that previous studies in the banking sector had shown that people did not choose to be unbanked; they were actually excluded by certain circumstances or undesirable banking practices such as high charges, lack of convenient products, and high minimum thresholds required for opening savings accounts. But because BSB was meant for the low-income bracket, it had affordable bank charges. 'BSB should (therefore) be considered as a major player in improving the living standards of all citizens, including less the privileged or disadvantaged people in our communities,' said Moyo.

He disclosed that the bank was planning to introduce a non-guaranteed residential loan, which would also provide wider access for people to qualify. Such products should go a long way in giving the bank a competitive edge.