{
  "title": "Botswana: Financial Sector Assessment Program-Technical Note on Financial Sector Safety Nets, Crisis Management, and Bank Resolution Framework",
  "publication": "IMF Staff Country Reports, March 5, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/03/05/botswana-financial-sector-assessment-program-technical-note-on-financial-sector-safety-nets-545504",
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  "summary": "This technical note highlights financial sector safety nets (FSN), crisis management, and bank resolution framework in Botswana. The financial safety net framework in Botswana is incomplete, while crisis preparedness and management structures must be expanded.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- This technical note highlights financial sector safety nets (FSN), crisis management, and bank resolution framework in Botswana.\n- The financial safety net framework in Botswana is incomplete, while crisis preparedness and management structures must be expanded.\n- The authorities are poised to significantly improve the FSN and Crisis Management framework."
    },
    {
      "heading": "Key findings",
      "content": "- The financial safety net framework in Botswana is incomplete.\n- Crisis preparedness and management structures must be expanded.\n- The Financial Stability Council (FSC) is identified as the institutional vehicle to develop system-wide safety nets and crisis management arrangements.\n- The FSC’s statutory responsibilities include mandates outlined in the Bank of Botswana Amendment Act, 2022."
    },
    {
      "heading": "Policy recommendations and operational priorities",
      "content": "- Implement a suitable law for the Deposit Insurance Scheme of Botswana.\n- Prepare an action plan for operationalizing the Deposit Insurance Scheme, including:\n  - Clear funding arrangements through bank contributions.\n  - A public backstop for the scheme.\n- Develop safety nets aligned with good international practices in the financial regulatory architecture.\n- The FSC should prioritize work over the near- to medium-term to develop these safety nets.\n- Expand the FSC to include a crisis preparedness and management mandate.\n- The FSC should:\n  - Oversee high-level monitoring of the financial system.\n  - Analyze the risks affecting the system.\n  - Discuss appropriate policies to mitigate those risks.\n  - Formally introduce system-wide crisis management protocols to plan and implement solutions in the event of a crisis."
    },
    {
      "heading": "Institutional reforms and mandates",
      "content": "- The FSC should be expanded consistent with its statutory responsibilities in the Bank of Botswana Amendment Act, 2022.\n- A formally mandated FSC crisis preparedness and management function is necessary to coordinate and implement system-wide protocols when crises emerge.\n\n---\n\n Content in this bundle\n\n- 1bwaea2024001\n  - 1bwaea2024001 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1bwaea2024001 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: March 5, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400269073.002",
    "This technical note highlights financial sector safety nets (FSN), crisis management, and bank resolution framework in Botswana.",
    "The financial safety net framework in Botswana is incomplete, while crisis preparedness and management structures must be expanded.",
    "The authorities are poised to significantly improve the FSN and Crisis Management framework.",
    "The financial safety net framework in Botswana is incomplete.",
    "Crisis preparedness and management structures must be expanded.",
    "The Financial Stability Council (FSC) is identified as the institutional vehicle to develop system-wide safety nets and crisis management arrangements.",
    "The FSC’s statutory responsibilities include mandates outlined in the Bank of Botswana Amendment Act, 2022.",
    "Implement a suitable law for the Deposit Insurance Scheme of Botswana.",
    "Prepare an action plan for operationalizing the Deposit Insurance Scheme, including:",
    "Develop safety nets aligned with good international practices in the financial regulatory architecture.",
    "The FSC should prioritize work over the near- to medium-term to develop these safety nets.",
    "Expand the FSC to include a crisis preparedness and management mandate.",
    "The FSC should:",
    "The FSC should be expanded consistent with its statutory responsibilities in the Bank of Botswana Amendment Act, 2022.",
    "A formally mandated FSC crisis preparedness and management function is necessary to coordinate and implement system-wide protocols when crises emerge.",
    "**1bwaea2024001**"
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