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.

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The elections had two teams namely: Team Reshaping MISA and Team Integrity. All Team reshaping MISA member won except for one candidate for the Secretary post. One can say it was a long road to the elections, looking at the fact that it took four years for the elections to be held. MISA board elections are supposed to be held every two years, but they could not be held in time due to the outbreak of the COVID-19 pandemic, which affected many...

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