Turnabout sweeps through banking sector

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A new era is dawning in Botswana’s banking sector with an emerging shortage of deposits and liquidity coupled with reduced profitability looking set to bring back the balance of power to predisposed depositors.

The volte-face, which has gradually developed over the past three years, also looks set to reverse the role of the central bank in open market operations from liquidity absorption to provision.

Before 2010, the banking sector had been characterised by excess liquidity, super normal profits and low deposits rates, making savings unattractive.

Editor's Comment
Batswana need to do better to stop FMD

It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...

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