Regulatory Alerts2020-04-01
Amendment to Capital Measurement Directive and Liquidity Support for Botswana Banks
The Bank of Botswana has reduced the minimum Capital Adequacy Ratio from 15 percent to 12.5 percent and introduced targeted liquidity measures, including waiving the Credit Facility borrowing penalty, extending repo facility maturity to 92 days, and expanding the eligible collateral pool to listed corporate bonds. These adjustments take effect April 1, 2020, aiming to alleviate pandemic-induced liquidity constraints and loan default pressures while enabling banks to sustain credit flow. The central bank will simultaneously monitor interbank market cooperation and foreign exchange transactions to prevent speculative trading and reserve depletion.
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