Financial Crime World

Botswana’s Bank of Botswana: Maintaining Financial Stability with Strict Regulations

The Bank of Botswana (BoB), serving as Botswana’s central bank, strengthens the country’s financial sector through rigorous regulatory measures. As the governing body overseeing local banks and financial institutions, BoB adheres to the Bank of Botswana Act, Banking Act, Banking Regulations 1995, Bureaux de Change Regulations 2004, and various additional directives, policies, and guidelines.

Pursuing Financial Integrity

BoB concentrates efforts on preserving financial stability within Botswana. To ensure fairness, competitive practices, and robust governance, the Bank fosters open dialogue with market participants through consultations:

  1. Encouraging market fairness and competitive practices.
  2. Supporting sound governance principles.

BoB upholds international regulatory and accounting standards to preserve professional integrity. Enhancing its banking supervision capabilities is a key focus.

Operational Measures

BoB’s operational approach to maintaining the financial sector’s health includes:

  • Transparent market entry: Well-defined entry criteria, guidelines, and requirements, outlined in the Licensing Policy.
  • Regular policy updates: Ongoing modifications to prudential policies and standards.
  • Structural and operational evaluations: Examination of banks’ solvency, liquidity, large exposures, insider loans, provisioning, and risk management strategies, in addition to their management and governance structures.
  • Continuous monitoring: Implementation of off-site and on-site surveillance systems, ensuring reporting, accounting, auditing, and disclosure standards are well-adhered to.
  • Regulatory enforcement: Prompt regulatory action and application of relevant banking and legislative provisions applicable to Botswana’s banking sector.
  • Monitoring unlicensed activities: Investigation and suppression of unlawful deposit-taking activities and practices.

For more information, please contact the Banking Supervision Department: