Botswana will take a significant step of reviewing existing Banking Act regulations and legislations to pave way for a two tier banking system that will make it easy for the establishment of home grown commercial banks.
This was revealed by the Minister of Finance and Economic Development Peggy Serame when officially opening the Botswana Savings Bank (BSB) Maun branch this week. She pointed out The minister pointed that the current requirements for establishment of banks are stiff and are making it difficult for locals to establish commercial banks.
She noted that this regulatory frame work will enhance in deepening and developing the country’ s financial sector in general. Serame highlighted that the government intends to implement guidelines and policies that will protect the country’s financial sector.
“Our aim is to have a completely and truly indigenous owned bank within the next two years as majority of banks in the country are not owned by locals,” Serame revealed.
Meanwhile Serame has commended BSB for providing financial solutions through extending into greater parts of Botswana where there are limited banking facilities which goes to the low income population in remote areas.
“I would like to encourage Maun residents to take advantage of BSB affordable financial products as individuals and business communities as it has big saving and investment product tailored for customer needs,” she said.
She also appreciated the financial solutions offered by BSB through its strategic partnership with Botswana Post to extend into the greater parts of Botswana where there are limited banking facilities thus primarily taking banking to low income population in remote areas.
For his part BSB Chief Executive Officer Nixon Marumoloa has noted that there is need for financial literacy among citizen across the country at all levels from the low income scales to high as there is a trend of mismanagement finances.
“With BSB, people in Maun and surrounding areas will have an opportunity of being offered financial management and financial literacy trainings for better management of their finances,” said Marumoloa.
Marumoloa revealed that as a locally owned government bank deposit taker, BSB currently has around P2.7 million and P3 billion loan book as of end of March this year with a growth of P1 billion in March last year and another P1 billion growth in March this year.
The 30-year-old government owned entity which currently has a total of 16 atms across the country aims at rolling out more with particular focus on areas that do not have BSB services. Maun branch makes a total of five BSB standalone branches in Gaborone, Francistown, Molepolole and Palapye adding to four core branded branches with Botswana Post at Rail park mall in Gaborone, Mahalapye, Hukuntsi, Sero
