Credit growth slows on tighter economy

Wednesday, June 17, 2026 | 220 Views |

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.

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Credit growth slows on tighter economy

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