NBFIRA - Member of Financial Stability Council

The Non-Bank Financial Institutions Regulatory (NBFIRA) became a signatory in the establishment of the Financial Stability Council by signing a Memorandum of Understanding (MoU) to establish a macro-prudential framework that seeks to protect the financial stability in both the non-banking and banking sectors by addressing and mitigating emerging risks, protecting sustainable development and promoting economic prosperity.  

The MoU was signed with Bank of Botswana, Financial Intelligence Agency (FIA) and the Ministry of Finance & Economic Development on 26^th February, 2019.

The Council’s main objectives are to promote collaboration and coordination with regard to:

1. Policy formulation;
2. Systemic risk identification and mitigation;
3. Exchange of information relating to financial stability and market regulation;
4. Coordinated management and response in the event of a financial crisis.

Speaking on the importance of this agreement Oaitse M. Ramasedi, Chief Executive Officer of NBFIRA stated that the respective institutions have already been collaborating and that the MoU formalises this existing cooperation.

 “I support this initiative because of the interconnectedness between the non-bank financial institutions and the banking institutions and the subsequent domino effect on our local financial system should something happen” he said.

It was stated that the MoU is a framework for cooperation and therefore does not repeal the statutory regulatory and supervisory powers of the participating institutions.