Banks cash less on household borrowing

• Household loans down to 5.4 percent
• Improvement in lending to businesses reported
• Household debt currently stands at P54.8 billion.

Botswana’s commercial banks had a tough time for the better part of 2022, thanks to a significant decline in the household loans income stream as inflation reduced borrowing power.

The Bank of Botswana (BoB) has revealed the decline in household loans in its Monetary Policy Report for December 2022, indicating that year-on-year household loans decreased from 8.5 percent in September 2021 to 5.4 percent in September 2022, signifying loss in banks revenues.