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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
Our digital safety is in our hands

That sounds like good news. But the report also warns that this may simply be because our digital economy is still young, not because we are safe. As more people shop, bank and pay online, criminals will follow.We Batswana do not need a report to tell us that danger is real. Many of us have heard of or fallen victim to KYC scams. A caller impersonates your bank or mobile money provider. They say they need to “verify” your account. They ask...

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