Domestic financial system shows stability: BoN

The Bank of Namibia’s Macroprudential Oversight Committee (MOC) has found that Namibia’s domestic financial system is stable, sound, and resilient.

According to the BoN’s Deputy Governor, Leonie Dunn in a recent statement, this is despite rising vulnerabilities and risks, particularly concerns around elevated non-performing loans.

She said the committee at its first meeting of the year, held last week to assess potential risks and vulnerabilities in the Namibian financial system based on the global and domestic macro-financial developments, found that the financial sector maintained adequate capital and liquidity buffers to withstand potential losses.

Furthermore, the financial market infrastructure (Namibia Interbank Settlement System) continued to function efficiently.

Dunn also stated that the Namibia Interbank Settlement System’s operations were efficient. While the domestic property market is constrained, the prognosis is largely optimistic due to governmental actions that have been implemented and loosened to enhance market conditions.

“Furthermore, the MOC is in the advanced stages of adopting and implementing the Countercyclical Capital Buffer (CCyB) as an additional macroprudential policy instrument in Namibia, and will thus monitor the risk environment to guide future CCyB decisions,” Dunn said.

(NAMPA)
CW/EK/HP

(NAMPA)