Banks are licensed in accordance with section 6 of the Banking Act and section 3 of the Banking Regulations, 1995.
Requirements for obtaining a Banking Licence
An “Application Package for a Banking Licence” is available from the Bank of Botswana on request. Requirements for a banking licence include:
- The applicant must be a company limited by share capital and incorporated in Botswana.
- The statutory minimum start-up capital is P5 million. The prudential capital adequacy ratio is 15 per cent. Representatives of the applicant bank must demonstrate the willingness and ability to provide additional financial support upon request.
- The applicant must demonstrate adequate managerial capacity; including the appointment of “fit and proper” persons.
- In the case that the representative of the applicant is a foreign bank, the parent bank must be subject to adequate home regulation, and consent of the parent bank's domestic regulator is required for the applicant to operate in Botswana.
- The proposed ownership and organisational structure must be acceptable to the Bank of Botswana, and the structure should allow for effective consolidated supervision.
- The applicant is required to submit a business plan summarising the strategic objectives of the bank, a set of five-year financial projections, a plan for the establishment of branches, banking services to be provided, and a demonstration of the ability to enhance competition.
- Payment of a non-refundable application fee of P16, 500.00 application fee.
Renewal of Banking Licence
Banking licences are issued for an indefinite period subject to payment of annual fees.
Banking Licence Timelines
The investor will require a minimum of 6 months to complete the application process for a banking licence.