Mmegi

A cooling down in the banking sector

Man in the street: The concentration of wholesale deposits amongst banks impacted ordinary consumers as lending rates rose nearly four percentages points higher than the BoB's benchmark last year PIC: MORERI SEJAKGOMO
Man in the street: The concentration of wholesale deposits amongst banks impacted ordinary consumers as lending rates rose nearly four percentages points higher than the BoB's benchmark last year PIC: MORERI SEJAKGOMO

As sure as the sun rises every day, banks have made healthy profits where each year is higher than the last. A rare slowdown occurred last year due to the economic contraction, but analysts are seeing more structural concerns, writes MBONGENI MGUNI

In 2007 commercial banks’ collective net incomes first breached the P1 billion mark. Today, the country’s top bank routinely makes P1 billion in pretax profits every six months.

Banks have grown from the “comfortable duopoly” of Standard Chartered and the former Barclays Bank in the 1950s, to become the country’s most consistently profitable sector, an industry that has ploughed unfazed through the recessions that have dampened the broader economy.

Editor's Comment
Let the courts follow the money

“Law and order are the medicine of the body politic and when the body politic gets sick, medicine must be administered.”– B.R. AmbedkarThe amount of money at play threatens to test the integrity of the country’s financial system, giving more reason to why the courts must be fully given leeway to lean on the matter and reach a conclusion.Botswana has spent decades building her reputation as a stable and credible financial jurisdiction.The...

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