Mmegi

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
Get back what was stolen, and lock the door

That a single private law firm pocketed P6.5 million for just four cases, out of a total P11.1 million paid for 25 matters, reeks of a system that was not merely disorganised but open to abuse.Bayford has taken a welcome first step by telling the Public Accounts Committee the truth. Now he must act decisively to ensure it never happens again and that any money lost to wrongdoing is recovered.The figures are staggering. Whilst ordinary Batswana...

Have a Story? Send Us a tip
arrow up