Bank of Botswana to Oversee SACCOs Under New Banking Act
The Bank of Botswana (BoB) is expanding its regulatory scope. Under the new Banking Act of 2023, the central bank will now co-regulate Savings and Credit Cooperative Societies (SACCOs), signaling a significant shift in financial oversight.
Enhanced Oversight for Community Finance
This move introduces stricter financial supervision for SACCOs. Historically, these community-based financial institutions have operated with a different level of regulatory scrutiny. The BoB’s involvement aims to strengthen their governance and stability.
Implications of the 2023 Banking Act
The Banking Act of 2023 grants the BoB these new powers. The legislation establishes a framework for co-regulation, indicating collaborative efforts with existing bodies that supervise SACCOs, though specific details of this collaboration are yet to be fully outlined.
Advancing Financial Stability
The integration of SACCOs into the broader banking regulatory framework reflects an effort to enhance overall financial stability. By bringing these entities under the central bank’s purview, authorities aim to mitigate risks and protect members’ deposits more effectively.
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