Money Is Expensive for Banks: How It Costs You As An Investor
- kitsodickson
- May 16
- 4 min read
Updated: May 22
If banks were shops, money would be their stock. They "buy" money at one price, then "sell" it at another. But lately, the cost of restocking the shelves—borrowing money—has gone up. Against this background, banks are trying to recover margins,
What’s New?
Stanbic Bank was the first to raise its lending rate from 6.01% to 7.01%, effective May 1, 2025.
Absa Bank followed suit, increasing its rate from 6.01% to 6.76% beginning May 6, 2025. First Capital Bank and Bank Gaborone, which are not listed, increased to 7.01% and 7.51% respectively. BBS Bank and Access Bank increased from 6.01% to 7.16% and from 6.01% to 7.01%, respectively.
If you have an existing loan or take out a new one with any of these banks, yes, your repayment will be higher.
But for shareholders, it signals a margin recovery move, especially if you own shares in Absa or Access, both of which have listed equities on the Botswana Stock Exchange (BSE). Stanbic’s shares are unlisted and cannot be traded like those of Absa and Access.
What’s important for investors is that the banks are trying to defend profit in a climate where borrowing money has become more expensive for even the banks themselves.
Banks are shops. Money is stock
Want to read more?
Subscribe to investormail.co.bw to keep reading this exclusive post.
