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Botswana’s Financial Stability Council (FSC) has emerged as one of the country’s most important policy coordination bodies, tasked with preserving the stability, resilience, and integrity of the financial system.
Formed by institutions that each oversee different components of the financial sector, the Council provides a unified platform for monitoring systemic risks, coordinating macroprudential policy, and strengthening the country’s preparedness for financial shocks.
The FSC brings together leadership from the Ministry of Finance, the Bank of Botswana, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), the Financial Intelligence Agency (FIA) and the Deposit Insurance Scheme Botswana (DISB), with the Botswana Stock Exchange Limited participating as an observer.
While these institutions retain their individual statutory mandates, the Council enables them to collectively address emerging vulnerabilities that cut across their jurisdictions. Its purpose is not to override or dilute existing regulatory powers, but to ensure a coherent national approach in an environment where financial institutions and markets are increasingly interconnected.
The following are the current members of the council:
Lesego Moseki (Governor, Bank of Botswana) - Chair
Dr. Tshokologo Alex Kganetsano (Permanent Secretary, Ministry of Finance) - Member
Verily Molatedi (CEO, NBFIRA) - Member
Bopelokgale Soko (Director General, Financial Intelligence Agency) - Member
Goememang Baatlholeng (Director, Deposit Insurance Scheme of Botswana) - Member
Aobakwe Aupa Monyatsi (CEO, Botswana Stock Exchange) - Observer
This coordination has become even more important as financial stability risks evolve. The global financial crisis of 2007–2009 illustrated the high economic costs of weak oversight, contagion and inadequate crisis response. Botswana’s policymakers recognise that a stable financial system must not only be liquid, solvent and efficient, but also capable of withstanding both domestic and global shocks—whether those arise from poor lending practices, capital flow volatility, or shifts in the terms of trade.
It is within this context that the FSC guides Botswana’s macroprudential framework. The framework aims to identify and contain systemic risks before they spill over into the broader economy. These risks often manifest through excessive credit growth, leverage, liquidity mismatches or concentrated exposures among systemically important institutions. The FSC also monitors vulnerabilities that originate outside the traditional banking system, ensuring that regulators can implement timely policy actions where necessary.
The Council’s mandate is underpinned by enhanced legislative support introduced through the Bank of Botswana (Amendment) Act of 2022, which formally established the FSC as a statutory body and broadened the central bank’s authority over financial stability matters. The Act also paved the way for the creation of the national Deposit Insurance Scheme, further strengthening the country’s safety nets.
To support its work, the FSC operates alongside a Technical Working Group responsible for in-depth analysis, risk assessment and policy recommendations. Drawn from the Council’s member institutions, the working group meets quarterly to scrutinise developments in the financial system and develop proposals for FSC approval. This structure allows the Council to focus on high-level policy decisions while relying on technical teams to maintain continuous surveillance of the sector.
Transparency remains central to the Council’s operations. After each meeting, the FSC communicates its assessments through public press releases that highlight the state of financial stability, emerging risks and recommended interventions. It also publishes a biannual Financial Stability Report, offering analytical insights into sector performance, vulnerabilities and systemic trends. Where policy action is required, the relevant regulator issues circulars to affected institutions, explaining the identified risks and the rationale behind the chosen measures.
Ultimately, the Financial Stability Council serves as a cornerstone of Botswana’s financial oversight architecture. By ensuring that key regulators share information, coordinate policy and respond collectively to risks, the FSC enhances the resilience of the financial system and supports sustainable economic growth. Its work helps maintain public confidence, strengthens the country’s crisis-preparedness and ensures that the financial sector continues to serve the real economy effectively.