Namibia’s banking system remains resilient and sound, with solid capital and liquidity buffers in place to withstand risks emanating from internal and external shocks as the world reels from the closure of a number of regional banking institutions in the United States and a global systemically important bank based in Europe, the Bank of Namibia (BoN) has said.
“The Bank of Namibia is confident that both the robust regulations and sound oversight of banking institutions in Namibia can shield local institutions from shocks that have shaken confidence in the banking system in those countries,” the central bank said.
Despite the ongoing global developments, the Namibian banking system remains liquid and well-capitalised, the BoN said.
“In this regard, the total risk-weighted assets stood at 17.0% at the end of December 2022, higher than the statutory minimum risk-weighted capital requirement of 10.0%.
“Similarly, the liquidity position of the banking sector stood at 17.8%, N$10.4 billion above the statutory minimum requirement. Maintaining adequate liquidity is a bank’s lifeline, ensuring it can honour its obligations as they become due.”
According to BoN governor Johannes !Gawaxab: “We have robust rules and regulations to thank for our set of circumstances. We are duty-bound to monitor these current global developments and any spill-over effects. However, as things stand, our institutions are insulated from these events, and our public members can be assured of the stability and soundness of our institutions.”
[Sours – Republikein]