Regulatory Alerts2025-02-05
Financial Stability Report | October 2023
The Financial Stability Council of Botswana, in collaboration with key regulatory agencies, issued this October 2023 report to assess and mitigate systemic vulnerabilities across the domestic financial system amid elevated global inflation, tight monetary conditions, and debt sustainability risks. The document outlines a comprehensive macroprudential policy framework that monitors sovereign, external sector, corporate leverage, banking liquidity, and non-bank financial institution exposures to prevent contagion and ensure economic resilience. It mandates coordinated cross-agency monitoring, timely policy interventions via circulars, and stress testing to address identified risks, including cyber threats, climate-related financial exposures, and structural market vulnerabilities.