Moses D Pelaelo: Botswana Stock Exchange opening bell ceremony

Remarks by Mr Moses D Pelaelo, Governor of the Bank of Botswana, at the commemoration of the acquisition of African Banking Corporation of Botswana Limited by Access Bank plc, Gaborone, 7 October 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
07 December 2021

Director of Ceremonies, I am delighted to join the Honourable Minister in acknowledging today's two-themed momentous occasion of, one, continuing the tradition of monthly recognition and promotion of capital market activity through the symbolic ringing of the bell to mark the start of share trading, and, two, the coming into the Botswana banking sector and market of Access Bank PLC, through the acquisition of the majority shareholding in African Banking Corporation of Botswana Limited (BancABC). I will, therefore, complement the Honourable Minister's insightful observations by projecting a central bank and regulatory perspective on some key aspects.

Distinguished Guests, while the Bank of Botswana has clear mandates as enshrined in Section 4 of the Bank of Botswana Act, I will, for the purposes of today's event, distill and project three aspects deriving from those mandates. These are the interrelated roles relating to sectoral regulation and supervision; promoting financial sector development and inclusion; and safeguarding financial stability.

Regulation and Supervision of the Banking Sector

First, it is important to appreciate that the coming into the market by a new entity, especially an internationally-active banking group, such as Access Bank PLC, requires careful and extensive evaluation that involves several elements. These include evaluation of the ownership and governance structures and scale of operations; financial strength and performance; strategic intent, market, and developmental impact; business conduct, reputation, and integrity issues; as reflected in performance and strategic direction. In this context, the "supervisory risk-perimeter" takes a consolidated view of the banking group, not only to identify sources of strength, but also likely sources of adverse impact on financial condition, reputation and overall safety and soundness of the financial system.