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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.

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Editor's Comment
Celebrate responsibly, put safety first this holiday

“Safety first is safety always”– Charles M HayesAs most people begin travelling across the country to spend the President’s Holidays with family and friends, there is every reason to embrace the joy and togetherness that this period brings.While holiday periods bring joy, they are sadly often accompanied by a rise in road accidents, violent incidents and other avoidable tragedies. Too often, families that set out to celebrate together end...

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