Abstract: | In Botswana, as elsewhere, the regulation and supervision of banks and financial institutions is viewed as a matter of national importance, and similar considerations are used here as elsewhere as a basis for such regulations. The types of regulations relate to the setting up of a banking business and its running as a legal entity on the one hand, and the prudential and fiscal regime, dealing with the taking of deposits as well as other public liabilities and their application for profitable business purposes, on the other. The present article highlights some of the regulations and with the aid of comparative references to some of the regional systems extrapolates their developmental potential. It concludes that in Botswana, as elsewhere in the region, the regulation of banks is largely prudential. Their role in development is dictated not by the needs of the country but by the business considerations and prejudices of their managers. Ref. |