Bank of Namibia says financial system stable despite global uncertainties

The Bank of Namibia (BoN) says the country’s financial system remains sound and stable, despite heightened global macro-financial uncertainties.

In a statement issued on Saturday, deputy governor Ebson Uanguta says the bank’s macroprudential oversight committee has held its second meeting of the year to assess risks and vulnerabilities affecting the domestic financial sector.

He says the committee concluded that the system continues to operate without disruption, supported by strong performance in both the banking and non-banking sectors.

Uanguta says the sectors remain well capitalised, with sufficient liquidity and capital buffers to absorb potential shocks. He says payment infrastructure and operations remain efficient and ongoing regulatory initiatives are expected to strengthen resilience further.

The committee’s latest assessment, conducted during its meeting on 20 November, reviewed global and domestic developments since July.

Uanguta says the global financial system has shown resilience even as economic and trade policy uncertainty remains elevated. He says financial market volatility has declined since peaking in April, and global financial conditions have broadly eased due to accommodative monetary policy in major advanced economies.

Asset valuations, particularly in the United States, remain significantly above historical averages.

On the domestic front, Uanguta highlights that the banking sector remained profitable, liquid and well capitalised during the third quarter of 2025. Total banking assets grew by 3.1% to N$184.7 billion, driven mainly by an increase in net loans and advances as well as short-term negotiable securities.

He says the return on assets was unchanged, while the return on equity rose from 19.8% to 20%, supported by higher-net interest and trading income.

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