Microlending industry records subdued performance in second quarter of 2019
The microlending industry’s loan book value recorded a contraction of 3.1% on a quarterly basis to reach N$6 billion at the end of the second quarter of 2019, according to the Namibia Financial Institutions Supervisory Authority (Namfisa).
Namfisa’s Quarterly Statistical Report shows that the subdued growth in loan book value could be attributed to the credit transaction of term loan that declined by 3.2% to N$5.9 billion. On the other hand, the downward trajectory witnessed in the value of the loan book is in contrast to trends observed in the banking sector.
The report further shows that Namfisa received 274 complaints from consumers of financial services during the quarter. Out of the 274 complaints, 97.8 percent jointly originated from only four industries, namely microlending and credit agreements, long-term insurance, short-term insurance and retirement funds.
For the period under review, resolution of complaints resulted in consumers receiving a total of N$572,830 from financial institutions.