BoB gets more licensing powers

BAKANG TIRO

editors@thepatriot.co.bw 

The central bank, Bank of Botswana (BoB), will see its powers and mandate increased to among others licensing the deposit taking institutions as proposed on the new banking law.

A new Banking Bill of 2023 that will be presented before Parliament by Minister of Finance Peggy Serame reveals the new developments with regards to the central bank’s mandate.

The new Banking Bill of 2023 will coerce banks to share confidential banking information with Bank of Botswana for any reasons that may be deemed to be appropriate. According to the draft bill, BoB’s mandate as a sole licensing authority will expand to include the licensing of the deposit taking institutions.

A deposit taking institution is defined in the bill as a company, other than a bank that is being licensed under this Act, to engage in the business of accepting deposits from members of the public.