BoB to co-regulate SACCOS under new banking regime

Bank of Botswana to Oversee SACCOS in New Regulatory Era

The Bank of Botswana (BoB) is expanding its regulatory scope, now including Savings and Credit Cooperative Societies (SACCOS) under the new Banking Act of 2023. This move signifies a notable shift in how these community-focused financial organizations will be supervised.

Enhanced Financial Oversight for Cooperatives

The decision places SACCOS under a more stringent regulatory framework. Historically, SACCOS have operated with different levels of oversight, but the BoB’s involvement aims to standardize and strengthen financial stability within the sector. This new co-regulatory role is expected to introduce stricter guidelines and greater accountability for SACCOS.

Policy Shift in Community Finance

This policy adjustment reflects a broader initiative to enhance the governance of financial institutions throughout the country. By bringing SACCOS under the purview of the central bank, authorities aim to foster more secure and transparent operations for these member-owned entities. The change could lead to more robust financial practices and increased depositor confidence within the cooperative banking landscape.