BoB moves ahead with deposit protection fund

Moses Pelaelo
Moses Pelaelo

The Bank of Botswana (BoB) has begun consulting banks as well as its partners in the Financial Stability Council on establishing a Deposit Protection Fund (DPF), which would insulate customers’ funds in the event of a bank default.

By July, deposits with commercial banks amounted to P74.4 billion, with individuals accounting for about 20% of these or P15.2 billion.

While stress tests done in June by the Financial Stability Council show local bank resilience in the event of a run on deposits, a DPF would provide more security in the local financial sector.

Editor's Comment
A step in the right direction

It has only been a month since the newly elected government, the Umbrella for Democratic Change (UDC), took power, and there are already a lot of changes. Across different ministries, ministers are hard at work. Following heavy rainfall and storms that hit Francistown recently, the Minister of State Presidency, Moeti Mohwasa, made a commitment that government will assist those affected by the heavy rains. Mohwasa, when addressing the media in...

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