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BoB warns as banks test interest rate moratorium

Speaking softly: The central bank says it is still engaging with banks and does not want to have to take tougher action PIC: MORERI SEJAKGOMO
Speaking softly: The central bank says it is still engaging with banks and does not want to have to take tougher action PIC: MORERI SEJAKGOMO

The Bank of Botswana’s conduct and compliance unit is scheduled to conduct an assessment of the effective interest rates prevailing amongst local banks, amidst reports that some of them are “innovating” around the central bank’s moratorium on raising rates.

Since October last year, the BoB has restricted banks from increasing their prime lending rates, the benchmark rate against which other credit products and services are priced within banks.

The move came after a sharp upswing in interest rates amongst banks due to the shortage of liquidity in the market.

Editor's Comment
Commitment by DPP to fight corruption welcome

Whilst many citizens put trust in their leaders that they are tackling one of the worst curses that can befall a country, the public has lost trust after all the cases seemed not to go anywhere.As the saying goes, ‘corruption is a cancer that eats away at the fabric of society’; corruption affects effective governance.Corruption affects delivery of services to the public and also crumbles most systems meant to assist citizens who are very...

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