Banking system sound, stable and resilient – Bank of Namibia
According to the Financial Stability Report of the Bank of Namibia, released this week, the Namibian banking sector was sound and resilient throughout 2022. The sector soundness indicators remained at comfortable levels and no policy intervention is warranted.
The bank said the Namibian financial systym is made up of the banking and non-banking sectors as well as the payment system and infrastructure.
“The sector reported higher profits, improved asset quality, a healthy liquidity position and capital adequacy well above prudential requirements.”
“The Non-Banking Financial Institutions sector remained financially stable and sound, despite a contraction in asset growth on the back of adverse financial market performance in the beginning of 2022.”
The National Payment System and infrastructure remained stable, while efficiently contributing to reliability in payments to facilitate financial stability.
“Since the last Financial Stability Report, growth in household debt slowed while corporate debt increased significantly, owing to an increase in foreign debt.”
Bank of Namibia Governor, Mr Johannes !Gawaxab, said the key message from the report is that the Financial System remains stable, amidst prevailing risks. The ability of the system to weather the storm is to a large extend thanks to the actions we took early on through strengthening the capitalization of banks, as well as the provision of relief measures.”
The full Financial Stability Report can be accessed at https://www.bon.com.na/Bank/Financial-Stability/Financial-Stability-Reports.aspx or https://www.namfisa.com.na/publications.