The Bank of Botswana has compiled a set of documentation referred to as the ‘Application Package for a Banking Licence'. This should be furnished as part of the banking licence application process, as prescribed by Section 6 of the Banking Act (Cap. 46:04) and Section 3 of the Banking Regulations, 1995. A complete application package can be obtained on request from the Banking Supervision Department. The Bank's approach to licensing and the requisite prudential requirements are also detailed in the Bank's Licensing Policy which is available on this website.
Access the Licensing Policy
The basic requirements for a banking licence application to be considered complete and acceptable for processing include the following:
The applicant must be a company limited by share capital and corporated under the Companies Act, as per Section 8(1) of the Banking Act.
The statutory minimum start-up capital is P5 million. The prudential capital adequacy ratio is 12.5 percent. The promoters of the applicant bank must demonstrate willingness and ability to provide additional financial support as and when required.
The applicant must demonstrate adequate managerial capacity; this includes the appointment of 'fit and proper' persons.
In the case of the promoters of an applicant being a foreign bank, the parent bank must be subject to adequate home supervision, and the consent of the parent's home supervisor for the subsidiary to operate in Botswana must be provided.
The proposed ownership and organisational structure must be acceptable to the Bank of Botswana, and the structure must be such that it allows for effective consolidated supervision.
The applicant must submit a business plan that includes the strategic objectives of the bank, a set of five-year financial projections; a plan for the establishment of branches, products to be provided, and a demonstration of the ability to enhance effective competition.
A non-refundable application fee (currently P17 100, VAT inclusive).
For more information contact:
Banking Supervision Department
Tel: (267) 3606354
Fax: (267) 3913862
E-mail: Lopezl@bob.bw