FSC warns against bank deposit concentration

The FSC is a multi-agency body, which is responsible for assessing vulnerabilities that could affect the resilience and stability of the local financial system. The Council is chaired by the Bank of Botswana and also includes the Ministry of Finance, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), the Financial Intelligence Agency (FIA), and the Deposit Insurance Scheme of Botswana (DISB). The Botswana Stock Exchange Limited sits as a non-voting observer. In its latest assessment, the Council warned against a concentrated banking market share in the Big Four.

The assessment showed that the majority of commercial bank deposits were concentrated amongst a few sources, which is a threat to the stability of the local banking market. First National Bank Botswana (FNBB), Standard Chartered Bank Botswana (SCBB), Absa Botswana and Stanbic have an overwhelming share of both assets and deposits.