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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
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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