Regulatory Alerts2025-01-01
Banking Regulations 2025
Issued by the Botswana Minister responsible for Finance under the Banking Act 2023, these regulations establish comprehensive licensing frameworks and prudential standards for all banking institutions operating in Botswana. The rules mandate minimum capital thresholds of P20 million, require banks to maintain 12.5 percent unimpaired capital and 10 percent liquid assets against deposits, and impose strict limits on large exposures, credit concentration, and related-party lending. Additionally, the regulations define permissible activities for commercial banks, discount houses, investment banks, and representative offices while outlining standardized procedures for mergers, voluntary liquidation, and ongoing supervisory reporting to the Central Bank.