Mmegi

Credit growth slows on tighter economy

Monetary moves: The Bank of Botswana is a key member of the FSC PIC: BANK OF BOTSWANA
Monetary moves: The Bank of Botswana is a key member of the FSC PIC: BANK OF BOTSWANA

Annual commercial bank credit growth, or the rate of output of loans from banks, continues to drop, as the tighter economy constrains borrowers and forces the institutions to tighten their risk assessments

Banks are also battling a prolonged liquidity crunch which has required some to temporarily pause lending activities and focus on balance sheet stability.

In its May report released this week, the Financial Stability Council (FSC) said annual growth in commercial bank credit has trended downwards since October 2025, registering a growth of 2.6 percent in February 2026 down from 5.8 percent in the corresponding period in 2025.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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