BANK OF BOTSWANA INTRODUCTORY MEETING WITH SAVINGS AND CREDIT COOPERATIVE
SOCIETIES.
Opening Remarks
DIRECTOR OF PRUDENTIAL AUTHORITY BOB ; Godfrey Ngidi
- Welcomed all attendees and commended them for their service to their communities.
- Praised the Department for Cooperative Development (DCD) for its continued efforts in nurturing cooperatives.
- Clarified that the Central Bank’s involvement will be limited to prudential supervision.
- Defined prudential regulation as providing oversight of financial institutions to ensure that they are financially sound, well-managed, and operate safely and stably.
- Announced that licensing applications to the Bank of Botswana will commence once the regulatory framework is completed.
- Emphasized that supervision by the Central Bank will enhance cooperative operations, add credibility, and protect against economic crimes.
- Explained that this regulatory change stems from a recommendation by the International Monetary Fund (IMF) following its assessment of the Central Bank’s compliance with international standards.
- Noted that while some regulatory requirements may seem stringent, they are designed to strengthen the sector.
- Confirmed that consultations are ongoing between cooperatives, apex bodies, and the DCD to ensure the best outcomes for the cooperative movement.
- Highlighted that all relevant Bank of Botswana departments engaging with cooperatives were represented at the meeting.
- Stressed that there will be continuous communication between the Central Bank and cooperatives moving forward.
