If a bank insolvency should prove unavoidable – and no supervisor in the world should be trying to ensure no bank ever exits the marketplace – then the purpose of the European recovery and resolution mechanism is to enable the bank to be wound up without significant danger to financial stability.In a “European resolution” scenario like this, banks’ owners and creditors are to bear a sufficient share of the losses.
I am aware that the Bank of Botswana, with its stability-oriented monetary policy - the conditions for which were improved still further in 1997 following the modernisation of the Bank of Botswana Act - has for years been making a substantial contribution to the much above-average performance of the Botswanan economy in Africa, even if a number of structural adjustments still need to be made.