Financial system stable – Bank of Namibia and NAMFISA
The Financial Stability Report for 2017, released this week jointly by the Bank of Namibia and the Namibia Financial Institutions Supervisory Authority (NAMFISA) states that the local financial system is healthy, sound and well-funded.
Bank of Namibia Director for Research, Florette Nakusera made the joint announcement with NAMFISA Manager of Communications and Consumer Education, Erna Motinga. They said that while the global economy remained sluggish during 2016, it is projected to improve moderately in 2017 and 2018 though.
The report assesses the stability and resilience of the Namibian financial system to withstand internal and external shocks. The report further highlights specific risks stemming from the macroeconomic environment, domestic household and corporate debt, the banking sector, the non-banking financial sector and payment and settlement systems.
The central bank’s overall assessment continuously monitors the risks to financial stability from the domestic, regional and global environment as a prudent measure. Since the last report, the Namibian financial system continued to prove its resilience as it withstood an array of adverse developments in the global and domestic economies during the period under review.
Meanwhile, the report states that growth in the corporate debt stock slowed in 2016, following the exceptionally strong growth recorded in 2015. This was evident in both domestic and foreign debt of the private sector