Financial system remains profitable in 2018, despite weak economic activity – report
The financial system continued to be sound and resilient throughout 2018, according to to the Financial Stability Report released Thursday.
The report released by the central bank, Bank of Namibia (BoN) and the Namibia Financial Institutions Supervisory (NAMFISA) assessed the stability of the Namibian financial sector and its resilience to internal and external shocks, during 2018, despite subdued economic activities.
The report highlights specific risks emanating from the external environment, the domestic economy, domestic household and corporate debt, the banking sector, the non-banking financial sector, as well as the payment and settlement system.
“The overall assessment concludes that the financial system remained sound, profitable and resilient, despite the weak domestic and global economic conditions as portrayed by increased vulnerabilities in some sectors,” the report said.
Meanwhile the two entities in the report said the domestic economy is projected to register a modest positive growth rate in 2019, which is also expected to contribute positively towards financial stability in Namibia, going forward.