2 December 2025
Botswana has officially overhauled its banking framework with the introduction of a new Banking Act, repealing the 1995 legislation and bringing a modern, risk-sensitive, and governance-driven approach to the country’s financial sector.
The Act introduces several key measures designed to enhance stability and accountability. It expands regulatory coverage to banks, deposit-taking institutions, and cross-border entities, while prohibiting foreign branches to ensure stronger local oversight.
Governance standards have been strengthened with mandatory board committees and enhanced accountability requirements.
A new resolution regime equips regulators with tools to manage failing banks without destabilising the system, complemented by stricter risk management measures, including early intervention, recovery planning, and biometric reporting. An Independent Appeals Tribunal has also been established to provide impartial recourse for regulatory disputes.
The Act aligns Botswana with international standards, including Basel and International Financial Reporting Standards frameworks, positioning the country as a credible player in global finance.
Source: https://shorturl.at/j5luB
