NBFIRA Publishes the 2018/19 Research Bulletin: The State of Capital Markets
NBFIRA 1/9/6 – I (13) 24th July, 2019
Press Release
NBFIRA Publishes the 2018/19 Research Bulletin: The State of Capital Markets
- The role of capital markets in economic development
- Demutualisation of the Botswana Stock Exchange and regulatory implications of it being declared an SRO.
- Effects of “FinTech” innovation on Capital Markets.
- The need to embrace product and service delivery innovation.
Botswana: The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) released its 2018/19 Research Bulletin which is produced annually.
The Bulletin whose theme this year, centres on domestic and global developments in capital markets, is a compilation of thought provoking articles that provide both historical and forward looking perspectives on some of the dominant trends in capital markets as well as the dynamics and performance of the local capital market industry.
“The latest Research Bulletin aims to inform and educate our stakeholders on the emerging trends and dynamics in the capital markets industry, as a precursor to stimulate public discourse about the industry, regulatory policy and related matters.” said Oaitse M. Ramasedi, Chief Executive Officer of NBFIRA.
The Bulletin, provides pertinent and timely insights on various topics including the Authority’s role in regulating capital markets, industry players and the impact of technological advancements within the industry.
The evolution of technological advancements of gadgets and their usage has advanced literacy, trading platforms, digital retail banking and cryptocurrencies. The next big leap forward is blockchain technology which has the potential to change markets in several significant ways which include transferring value and holding records, maintaining central ledgers on computers and improved global market access. The challenges presented by blockchain include being disruptive to existing business models and regulatory tools. These dynamics present the global concerted effort to harness economic benefits of “FinTech” while mitigating risks.
Commenting on the role of capital markets in economic development and diversification, Ramasedi added “Capital markets allow for resource mobilisation and distribution to finance businesses, enhance economic growth and employment creation. These are inter-alia critical ingredients in sustainable economic development and diversification.”.
The local capital markets industry’s total Assets Under Management (AUM) were P52bn in 2017. The Bulletin explores the impact and ramifications of the demutualisation of the Botswana Stock Exchange in 2018.
The financial soundness of the economy is also explored through an analysis of the performance and financial stability issues of the financial system. In this regard it is demonstrated that the main benefits of having IFSCs are attracting foreign direct investment (FDI), skills transfer and employment creation.
The Botswana capital markets in 2017/18 saw both the Domestic and Foreign companies indices fall consistent with global market developments as the markets reacted to political and policy controversies.
The 2018/19 Research Bulletin is available on the www.nbfira.org.bw.
Notes to Editor
About the Non-Bank Financial Institutions Regulatory Authority (NBFIRA)
Promulgated by an Act of Parliament in 2006, the Authority began its operations in 2008 and since then has achieved significant regulatory and supervisory milestones that have enabled the NBFI sector to grow and operate in line with international standards and best practices. The Authority oversees the NBFI sector, which in 2018 had assets worth approximately P120 billion, accounting for 55% of total assets in the local financial system. In that year, the sector comprised of just under 800 regulated entities and had a gross income of P17 billion. The Authority is governed by the NBFIRA Act (2016) which repealed the previous NBFIRA Act (2006).
For more information, please contact:
Boa M. Chombah
Head, Communications & International Affairs
Tel: +267 310 2595 / 368 6100; Email: bchombah@nbfira.org.bw
