Non-bank financial institutions remain financially stable and sound- NAMFISA
Despite tough economic conditions faced over the last financial year, Namibia’s Non-bank financial institutions remained stable and sound, said Kenneth Matomola, Chief Executive officer of the Namibian Financial Institutions Supervisory Authority (NAMFISA).
At the launch of the Authority’s 2018 annual report, Matomola explained that no systemic vulnerabilities were identified in the financial system as these institutions’ balance sheets remained financially sound, well capitalised and solvent. Further, the industry continued to grow its assets by 18% from N$243.7 billion to N$287.5 billion, despite recessionary economic conditions.
The report indicated that the pension funds sector continued to grow its assets as it remained solvent with sound funding levels, while long and short-term insurances continued to hold sufficient excess assets to cushion adverse shocks with sufficient excess reserves, respectively.
“Despite recessionary conditions, the investment management and collective investment scheme sectors prudently invested non-bank financial institutions’ asset base as they derived positive returns from their investments, mainly owing to a positive performance in the financial markets, which in turn grew the non-bank financial institutions’ asset base,” Matomola added.
Furthermore, during 2017/18, NAMFISA received a total of 990 complaints which is an increase of 24.4% from the previous year. A total of N$60 million was reimbursed to complainants following NAMFISA’s intervention for the financial year.