Bank of Botswana (BoB) Governor Lesego Moseki says Botswana’s financial system remains stable, resilient and capable of withstanding moderate economic shocks, despite mounting domestic and global economic uncertainties.
Speaking at the Financial Stability Council media briefing yesterday, Moseki said the Council’s 2026 assessment found that the banking sector remains sound, supported by strong capital and equity buffers, sustained profitability, low non-performing loans and effective regulatory supervision.
He said non-bank financial institutions also remain adequately capitalised and profitable, while reliable financial market infrastructure continues to support financial intermediation and the growth of digital financial services.
However, the Governor cautioned that risks persist, particularly from domestic liquidity and funding pressures, public debt levels, external sector vulnerabilities and concentrated exposures across the financial system.
He noted that government financing pressures have affected domestic liquidity and increased funding costs, although fiscal consolidation measures and timely project financing arrangements are helping to moderate these constraints.
At the global level, Moseki highlighted risks arising from volatile sovereign bond markets, excessive leverage among non-bank financial institutions, potential market corrections involving artificial intelligence-related equities and emerging AI-enabled cybersecurity threats.
