IMF Staff Country Reports

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

March 5, 2024

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Botswana: Financial Sector Assessment Program-Technical Note on Systemic Liquidity Management, (USA: International Monetary Fund, 2024) accessed November 21, 2024

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.

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

Keywords: B. emergency liquidity, B. liquidity management framework, Collateral, Commercial banks, Liquidity, Liquidity requirements, Liquidity risk, Liquidity risk, Liquidity vulnerability, Risk control measure

Publication Details

  • Pages:

    33

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2024/060

  • Stock No:

    1BWAEA2024002

  • ISBN:

    9798400267604

  • ISSN:

    1934-7685