therefore, you are all encouraged to use the branch and, of course, all other licensed banks in your area, to save money and undertake other financial transactions. similarly, it is my expectation that bank gaborone w ill take full advantage of the botsw ana payments and other public infrastructure, partnership w ith mobile operators and other electronic payments systems, to enhance financial inclusion ; and this includes providing the much - needed support for the informal businesses in botsw ana in general and maun, in particular. distinguished guests, ladies and gentlemen, in addition to w hat i have just said, i w ish to implore the maun community to engage banks w ith viable borrow ing proposals that are sustainable and can yield positive returns. equally, important, and having obtained loans and other credit facilities, borrow ers should honour their obligations by adhering to the repayment programme agreed w ith banks. distinguished guests, i am making this point because the bank of botsw ana is concerned about the recent observed upw ard trend in non - performing loans. while this trend could be, in part, due to sluggish global economic activity and idiosyncratic business performance and environment, there is some evidence of lack of financial discipline on the part of some individuals and poor management practices by some businesses. there is also an undesirable creeping culture, on the part of some customers of banks, of failing to repay their obligations to banks according to the agreed schedule. let me, therefore, take this opportunity to remind you, distinguished guests that, in the main, banks in botsw ana are funded mainly by depositors / savers ’ funds. therefore the board and management of a bank have a fiduciary duty and responsibility to ensure that the lending and credit underw riting standards are sound ; the bank is managed in a safe and prudent manner, to safeguard depositors ’ funds and ensure that these borrow ed funds are not lost through uncollectable loans. in this context, i should therefore caution that, w here a borrow er is in default, the bank is entitled to institute law ful, procedural and ethical recovery procedures including attachment and liquidation of property pledged as collateral to recover its money. moreover, providing for a loss or w riting off a loan in the bank ’ s books, as a non - bankable asset, does not extinguish the debt the customer ow es to the bank. in this case,

- border cash deposits and similar inw ard transfers are supported by duly completed and valid documents, w hen processing such transactions. it is also important to indicate that banks have a screening process to ensure that entities and individuals on the international sanctions lists do not use the botsw ana banking system as a conduit for illegal activities and other forms of financial crime. banks also routinely monitor accounts for suspicious activity and file suspicious transactions reports ( str ) w ith the financial intelligence agency. while it is not evidence of illegality, the report triggers appropriate steps, including follow up action by relevant authorities, such as the bank of botsw ana, nonbank financial institutions regulatory authority and other law enforcement agencies. having said that, i can confirm that both the financial intelligence agency and the bank of botsw ana continue to monitor and enforce, in line w ith their respective mandate, local banks'compliance w ith applicable law s, business conduct requirements, as w ell as the anti - money laundering and combatting the financing of terrorism protocols. this leads me to the third topical issue, namely, cybercrime and related other financial crimes. distinguished guests, technology is the future of banking and many of us w elcome the benefits of new information and communication technologies, in various facets of our lives, including enhanced cost - effective access to financial services and the associated convenience of conducting banking and other transactions. how ever, in as much as these technologies increase efficiencies and bring other economic benefits, the speed, scale and the cost of any fraudulent activity perpetrated through these channels can be enormous, ruining the lives of many and causing major harm to institutions and society, in general. these financial crimes can take many forms including unauthorised cash w ithdraw als from customers ’ bank accounts at automated teller machines ( atms ), identity theft, scanning and cloning of bank cards, disruption or compromising business processes, internal fraud and, more broadly, cyber - crime. if not properly mitigated, these crimes can discourage members of entrusting their savings w ith the public from banks and this could undermine public confidence and trust in the banking system. consequently, w e need to be on guard, as institutions, businesses and individuals to mitigate cybercrime and other forms of financial crime risks. the national banking week message by the bank of botsw ana, in 2011, articulated the issue w ell as follow s that ;