Mmegi

More lending rates to rise on liquidity squeeze

Friday, May 16, 2025 | 1350 Views |

On alert: Dekop chairs the FSC PIC: PHATSIMO KAPENG

More banks are set to increase the interest rates they charge on loans, while others intend to narrow their lending to clients with the highest returns, as a long-running liquidity crisis in the banking sector tightens its grip.

This week, BBS Bank and Access Bank joined Absa Bank Botswana and Stanbic Bank Botswana in increasing their prime lending rates, the first time commercial banks have uncoupled from the Bank of Botswana’s interest rate guidance since the freedom to do so was granted in April 2023.

The increases in the lending rates range from 75 basis points to 115 basis points, as the cash-poor government’s higher appetite for debt sucks up liquidity in the local capital market.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

Bank of Botswana

Gov't commits to unlock productivity to drive economy

Larona Makhaiza | 1d ago

Gov’t moves to settle with accused in ‘Butterfly’ case

Sharon Mathala | 1d ago

Botswana slips in Global Competitiveness rankings

Pauline Dikuelo | 20 Jun 2025

Gov’t sticks by Minergy despite market red flags

Lewanika Timothy | 20 Jun 2025

DIS tainted Maun project costs soar to P2.9bn

SPIRA TLHANKANE | 20 Jun 2025

A Royal Affair: MultiChoice Botswana and National Arts Council Botswana host exclusive screening of Shaka iLembe Season 2

Staff Writer | 13 Jun 2025

Shaka iLembe Season 2 – Episode 2: The Drumbeat of War Echoes

Staff Writer | 20 Jun 2025

Debswana ahead on Jwaneng underground despite cash crunch

Lewanika Timothy,Mbongeni Mguni | 20 Jun 2025

Let’s fight GBV as a collective

Botswana for the longest time was known for her virulent peace with family being an enviable institution.As the media, we are also scared to be incessantly reporting on these bloody scenes where women are brutally murdered and worse, sometimes in front of their children and loved ones. Yes, we have reported cases where men were also brutally murdered by their loved ones, but such cases are a drop in the ocean.For the past two weeks, Botswana was...

Staff Writer | 23 June 2025

About us

Mmegi is the leading independent source of breaking news, latest news, current
affairs, Politics, Business, Sport, debates, analysis, and entertainment news in Botswana.

Explore

More

More lending rates to rise on liquidity squeeze

More banks are set to increase the interest rates they charge on loans, while others intend to narrow their lending to clients with the highest returns, as a long-running liquidity crisis in the banking sector tightens its grip.