Authorities to regulate financial sector
The Bank of Namibia and the Namibian Competition Commission this week signed a memorandum of agreement which will provide the which will provide the two authorities with checks and balances to guide their relationship when dealing with mergers or acquisitions, as well as matters of an anti-competitive nature between banking institutions.
The agreement will streamline the two authorities’ respective decision making processes on competition with in the sector, which will in turn, lead to a consistent application of competition principles and law in the sector.
Speaking at the signing ceremony, Lucius Murorua, chairperson of the Namibia Competition Commission, said the realisation of engaging a sectoral regulator such as Bank of Namibia started in 2010.
Murorua further said that the commission is open to promote good working relations with its sectoral regulators, hence the direct and pragmatic approach it has taken to engage on a continual basis with the Bank of Namibia towards realising the relevant provisions of the Competition Act.
Also speaking at the ceremony, Ipumbu Shiimi, governor of the Bank of Namibia, said that the signing of the agreement will remove any grey areas that may have existed in the interpretation of the banking and competition laws in the country.
Shiimi said that with the introduction of the Competition Act of 2003, which will guard against anti-competitive behaviour and restrain banking institutions from engaging in restrictive business practices, the Bank of Namibia recognised the broader mandate of the Competition Commission.
“…the signing of the agreement originates from the provisions of section 67 of the Competitions Act of 2003, which will effectively provide the two authorities with the appropriate checks and balances to guide its relationship, when dealing with mergers or acquisition or matters of an anti-competitive nature between banking institutions,” he said.
Through this agreement, the two entities will co-operate in the areas of joint responsibilities to promote fair competition and or stable financial environment.