Banks penalised for breaching liquidity thresholds

Motsumi
Motsumi

The P2.3 billion unlocked by the Bank of Botswana (BoB) in April through halving of the Primary Reserve Requirements (PRR) has helped some commercial banks to move back above minimum regulatory liquidity thresholds.

At a press briefing held by the central bank this week, it emerged that at the peak of the liquidity squeeze, some banks fell below the minimum liquidity threshold and were subsequently penalised by the BoB.

The Banking Act prescribes that commercial banks are required to keep at least ten percent of the assets in cash or near cash local instruments to meet short-term depositor obligations.

Editor's Comment
Batswana need to do better to stop FMD

It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...

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