Namibia’s banking sector stable – !Gawaxab

Namibia’s financial system remained stable, robust and resilient amid global and domestic economic challenges.

This was said by Bank of Namibia governor Johannes !Gawaxab when he presented the central bank’s 2023 Annual Report on Tuesday.!Gawaxab said capital adequacy in the banking sector marginally dropped from 16,9% in 2022 to 16,8% in 2023, while liquidity dropped 4,7% to N$26,5 billion in 2023.

“It is our job to ensure a sound and stable financial system and Namibia’s financial system remained resilient, stable and sound amid lower, slower economic growth and high interest rates.”

The governor said the banking sector remained well-capitalised and liquid during 2023, well above prudential requirements.
He added that banking and non-banking financial intuitions remained profitable in 2023 as net interest income buoyed profitability in the sector during 2023.

“The financial system has to be resilient enough to cope with increased risk and heightened uncertainty besides real economic and financial risks.“This includes operational risks, cyber security risks, and banks should use the good earnings they made in 2023 to further show up the resilience, as negative shocks to the financial system have become larger and more frequent than in the past,” !Gawaxab said.

He added that the central bank should not be expected to perform miracles as there are limitations to what monetary policy can achieve.

“At times, we need to implement policies that are not immediately popular but are necessary for the overall health of the economy.

“It is not the role of the bank to seek universal approval, rather we are tasked with making decisions that benefit the broader economy, therefore, it is important for us to constantly communicate and explain to the public the rationale behind our decisions and how our actions contribute to the well-being of the Namibian society,” he said.

Full story in tomorrow’s issue of The Namibian

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