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
Respect public institutions Mr Pres

Leaders must uphold the rule of law and ensure justice, but Masisi’s remarks raise serious concerns on the separation of powers and the independence of the justice system.Masisi’s claim that he personally instructed authorities not to handcuff Khama, regardless of the legal circumstances, undermines the principles of justice and equality before the law.As Head of State, Masisi should respect the judicial process and avoid interfering in...

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