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
Botswana must not be a flag of convenience for rogues

‘A man’s country is not a certain area of land, of mountains, rivers, and woods, but it is a principle and patriotism is loyalty to that principle’.- George William CurtisAccording to the report carried in this publication, the fraudsters operating the so-called “dark fleet” have selected Botswana’s flag as their cover of choice. This is a direct assault on our country’s most valuable asset, the good name.For decades, Botswana has...

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