IMF Staff Country Reports

Botswana: Financial Sector Assessment Program-Technical Note on Systemic Liquidity Management

Publication Date:

March 5, 2024

Electronic Access:

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Summary:

The challenges of Botswana’s highly interconnected financial system requires an effective systemic liquidity management framework. Commercial banks’2 funding sources from corporates and non-bank financial institutions (NBFIs) and credit exposures to households create avenues for risk transmission. Corporations and NBFIs (pension funds and insurance companies) constitute the main depositors of the banking sector. Strong linkage also exists between banks and the household sector, as households contribute 21 percent of banks’ total deposits and receive 67 percent of banks’ total lending in the form of unsecured loans.

Series:

Country Report No. 2024/060

Subject:

Asset and liability management Collateral Commercial banks Financial institutions Financial regulation and supervision International organization Liquidity Liquidity requirements Liquidity risk Monetary policy

Frequency:

regular