Deposit protection scheme could spur reckless lending

Pelaelo says small savers need to be protected
Pelaelo says small savers need to be protected

The Bank of Botswana says while introduction of a Deposit Protection Fund (DPF) could see commercial banks engage in riskier lending, the cost-benefits are still in favour of establishing the shield for depositors.

The central bank continues to consult on the DPF, which would insulate customers’ funds in the event of a bank default, with a focus on small savers. By September, commercial banks held deposits of about P75 billion, with about P15.3 billion of these owed to individual customers.

While the Financial Stability Council, made up of the BoB, NBFIRA and the Financial Intelligence Agency, has already concluded consultations on the macro-prudential policy framework, talks with the banks are ongoing.

Editor's Comment
Congratulations Anicia Gaothuse!

The contest had 10 beautiful young girls as finalists and unfortunately only one could wear the crown.The judges picked Anicia Gaothuse. To all those who feel their contestant should have won ahead of Anicia for whatever reason, hardly; the judges found Anicia to be the best among the best, so desist from disrespecting our newly crowned queen on social media or anywhere else, for that matter! Each of the 10 beautiful young women had supporters...

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