https://en.sputniknews.africa/20241213/namibias-financial-system-remains-stable-amid-global-and-domestic-risks-central-bank-says-1069695960.html
Namibia’s Financial System Remains Stable Amid Global and Domestic Risks, Central Bank Says
Namibia’s Financial System Remains Stable Amid Global and Domestic Risks, Central Bank Says
Sputnik Africa
This assessment followed the MOC’s second meeting of the year, held on 05 December 2024, where risks and vulnerabilities in the financial sector were reviewed. 13.12.2024, Sputnik Africa
2024-12-13T12:04+0100
2024-12-13T12:04+0100
2024-12-13T12:15+0100
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The Bank of Namibia’s Macroprudential Oversight Committee (MOC) has confirmed the stability, soundness, and resilience of Namibia’s financial system despite global and domestic macrofinancial uncertainties.In a report issued on Thursday, the BoN stated that the MOC highlighted that both the banking and non-banking financial sectors have adequate capital and liquidity buffers to withstand any losses. Payment infrastructure and operations were described as efficient. It stated that progress is being made in strengthening the banking sector’s resilience and resolving property market vulnerabilities through macroprudential policies. According to the statement, global economic growth is expected to stay constant at 3.2% in 2024 and 2025, boosted by more investment, lower inflation, and stable trade flows. It stated that risks remain, including geopolitical uncertainties, high sovereign debt levels, and real estate market vulnerabilities, and that domestically, Namibia’s real GDP growth is expected to moderate to 3.5% in 2024, before improving to 4.0% in 2025, with downside risks linked to drought conditions and low diamond prices. It also noted that non-bank financial organizations had strong development, with assets increasing by 9.0% to N.dollars 486.6 billion (approximately $27.4 million), owing to improved global financial market conditions and greater demand for financial goods. The property market saw moderate vulnerabilities, such as poor loan demand and dwelling sales. According to the report, monetary and fiscal policy measures are projected to help the sector recover. The MOC concluded that no additional macroprudential policy interventions are needed at this time, adding it will continue monitoring risks and conditions to ensure the financial system’s stability and resilience.
https://en.sputniknews.africa/20241213/namibian-economy-grew-by-28-in-the-last-quarter-of-2024-statistics-agency-says-1069688190.html
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Namibia’s Financial System Remains Stable Amid Global and Domestic Risks, Central Bank Says
12:04 13.12.2024 (Updated: 12:15 13.12.2024) Namibia Press Agency (NAMPA)
This assessment followed the MOC’s second meeting of the year, held on 05 December 2024, where risks and vulnerabilities in the financial sector were reviewed.
The Bank of Namibia’s Macroprudential Oversight Committee (MOC) has confirmed the stability, soundness, and resilience of Namibia’s financial system despite global and domestic macrofinancial uncertainties.
In a report issued on Thursday, the BoN stated that the MOC highlighted that both the banking and
non-banking financial sectors have adequate capital and liquidity buffers to withstand any losses. Payment infrastructure and operations were described as efficient.
It stated that progress is being made in strengthening the banking sector’s resilience and resolving property market vulnerabilities through macroprudential policies. According to the statement, global economic growth is expected to stay constant at 3.2% in 2024 and 2025, boosted by more investment, lower inflation, and stable trade flows.
It stated that risks remain, including geopolitical uncertainties, high sovereign debt levels, and real estate market vulnerabilities, and
that domestically, Namibia’s real GDP growth is expected to moderate to 3.5% in 2024, before improving to 4.0% in 2025, with downside risks linked to drought conditions and low diamond prices.
“The banking sector demonstrated resilience, with assets growing by 3.7% to N.dollars 181.0 billion [about $10.2] during the third quarter of 2024. Liquidity ratios improved, though profitability declined due to reduced net interest income and higher provisioning. Non-performing loans (NPLs) rose slightly to 5.9% but remained manageable with sufficient provisions and capital buffers,” the committee said.
It also noted that non-bank financial organizations
had strong development, with assets increasing by 9.0% to N.dollars 486.6 billion (approximately $27.4 million), owing to improved global financial market conditions and greater demand for financial goods.
The property market saw moderate vulnerabilities, such as poor loan demand and dwelling sales. According to the report, monetary and fiscal policy measures are projected to help the sector recover.
"Namibia’s interbank and settlement system performed well, reducing settlement risks. The MOC continues to bolster the banking sector’s resilience and address property market vulnerabilities through regulatory measures, including changes to the Loan-to-Value ratio," it said.
The MOC concluded that no additional macroprudential policy interventions are needed at this time, adding it will continue monitoring risks and conditions to ensure the financial system’s stability and resilience.
