Regulatory Alerts2025-02-05
Financial Stability Report | October 2024
The Financial Stability Council of Botswana, alongside the Bank of Botswana and allied regulatory bodies, published its October 2024 assessment to evaluate systemic vulnerabilities and direct macroprudential interventions across the domestic financial sector. The report confirms resilient commercial banks and robust capital markets, but warns that deteriorating fiscal buffers, shrinking foreign exchange reserves, and weak diamond exports are intensifying sovereign risks and pressuring the exchange rate framework. To contain contagion from concentrated sectoral exposures and rising household leverage, regulators are advised to maintain tight supervisory oversight, manage liquidity amid persistent foreign currency outflows, and implement coordinated fiscal measures to safeguard long-term financial stability.