Q: How do you perceive your designation as a Domestic Systemically Important Bank (D-SIB) in Botswana?
A:ย This reinforces our standing as a leading financial institution in Botswana with the ability to contribute meaningfully to the economic development of the country. The designation highlights the size, interconnectedness and complexity of Absa in the Botswana financial market. The bank plays a critical role as a leading financial institution in the advancement of the economy from an upper-middle-income country to a high-income country by 2036 as depicted in the countryโs transformation agenda.
Q: What does this mean for your operations and responsibilities as a commercial bank?
A:ย Thisย will have no material impact on our operations and responsibilities first of all. The impact will be how we manage our capital and Liquidity with a specific lens on the requirements as a D-SIB. However, as we are part of a Group that reports with similar requirements, this puts us in good standing.
Q:ย With Absa holding a large share of the total banking industry domestic assets, how do you ensure that your significant market share positively impacts the financial stability of Botswana?
A:ย This was the case even before we were designated as a DSIB and therefore we will continue to ensure that we adhere to the regulations that ensure we are positive contributors to the financial stability of the sector.
Q: What frameworks do you have in place to identify, assess, and mitigate systemic risks associated with being a large bank?
A:ย We have robust governance structures, frameworks and processes in place that support risk management within the bank. This allows us to be dynamic in our approach and this is benchmarked against best practice.
Q: How does Absa ensure compliance with the regulatory requirements set by the Bank of Botswana, particularly those specific to D-SIBs?
A:ย The bank continuously enhances and embeds new/updated requirements in its policies and frameworks to ensure compliance with the latest regulatory requirements. The relevant Absa employees are regularly upskilled in line with evolving regulatory developments to ensure readiness for upcoming regulatory changes.
Q: Given Absaโs extensive branch network, how does it maintain operational efficiency while ensuring accessibility and quality service across all branches?
A:ย The bank prides itself on a robust branch network which is supported by a competent team which undergoes regular training and operates on relevant technologies and platforms enabling the bank to track and monitor operational efficiency.
Q: What steps are you taking to maintain and enhance public confidence in your institution?
A:ย The bank continues to engage with its stakeholders, maintaining a transparent approach regarding its policies, fees and financial performance. Absa as a listed company also adheres to and remains compliant with regulatory requirements. Putting our customers at the centre of everything that we do ensures that the bank maintains and enhances public confidence.
