Global economic crisis has zero effect on Nam banks

EVENTS in the US and global financial system have had zero impact on Namibian banks, says Bank Windhoek Retail Banking Executive Chris Nel.

According to Nel, prudent management has ensured that Namibian banks are well positioned to weather the economic storm and recession.
‘Our banking law and prudential requirements for the banking industry, legal framework for collateral on property finance and lending policies that are more conventional and conservative, ensure that credit risks are managed far more prudently than has been the case in the US,’ he said.
‘The [same] prudence will be required from all Namibians with lower consumer spending, lower credit extension and renewed focus on debt reducing and savings,’ he added.
Nel made these remarks at the opening of the upgraded Bank Windhoek Mariental branch on Thursday.
He said Namibian banks have sound balance sheets which are well capitalised thanks to good financial performances and reinvestments of profits over the years.
He said Bank Windhoek’s capital and reserves amounted to N$913 million at the end of June last year.
‘The capital adequacy ratio of Bank Windhoek at that date was 13.613 per cent, well above the statutory requirement of 10 per cent of risk-weighted assets,’ he added.
Nel said the upgrade of the Mariental branch, which first opened its doors in 1982, will strengthen the development of the economy and trading potential of the southern town.
At the same occasion, Mariental Mayor Priscilla Beukes called on the bank’s executive management to put more emphasis on financial education programmes on savings and investments.
Beukes said this would help people to become more money conscious and more financially independent.