Botswana: Selected Issues
IMF Staff Country Reports, August 8, 2017
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Bibliographic details
- Published: August 8, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484314906.002
Overview
- Examines the stability of the financial sector in Botswana.
- Concludes that the financial system has grown rapidly over the years but that substantial scope for expansion remains.
- Attributes growth to political and economic stability, savings from diamond exports, and fiscal surpluses.
Financial system growth and composition
- Banks, institutional investors, and the Botswana Stock Exchange have grown steadily over the years based on political and economic stability, savings from diamond exports, and fiscal surpluses.
Risks, data gaps, and interconnections
- Data gaps and incomplete information on cross-border capital flows may entail risks.
- Growing interconnection with the nonbank financial sector may entail risks.
- Macro-financial risks associated with banks’ large exposures need proper assessment.
Policy recommendations and supervisory priorities
- Botswana’s financial stability framework could benefit from upgrading.
- Close cooperation among regulators is recommended to address data gaps and supervisory blind spots.
- Proper assessment of macro-financial risks associated with banks’ large exposures will contribute to more effective financial system supervision.
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- Country Report