Big Five lose ground in banking sector

The BoB wants greater competition. PIC: MBONGENI MGUNI
The BoB wants greater competition. PIC: MBONGENI MGUNI

The smaller players in the country’s commercial banking sector gained ground on the Big Five last year, aggressively competing for deposits and loans, the Bank of Botswana (BoB) has noted.

Lack of commercial banking sector competitiveness has long been a thorn in the side for regulators, as the dominance of a group of established players has meant market access issues for new entrants and the potential for ‘cartel’ type behaviour in costs of services and products.

First National Bank, Barclays, Standard Chartered and Stanbic have traditionally dominated the country’s banking sector in terms of balance sheets and numbers of customers, although in recent years, BancABC also joined their ranks.

Editor's Comment
Implement the recommendations Mr. President

The nation is eagerly awaiting this report to have a glimpse of what the recommendations are like, possibly for further debate. Mr. President, it’s our ardent hope that true to your promises, the public will have an opportunity to peruse the report and see if it reflects their interests as the Commission went around the length and breadth of the country collecting views of the people with some choosing to write to the Commission’s...

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