Second Nam financial sector review launched

THE Namibian financial sector is the second best performing industry in the country after mining, the Permanent Secretary of Finance, Calle Schlettwein, said at the launch the second edition of the Namibia Financial Sector Review (NFSR) 2008 in Windhoek on Friday.

The financial sector, Schlettwein said, showed an annual growth of 9,8 per cent between 2001 and 2006. The 160-page 2008 edition of the Namibia Financial Sector Review contains interviews with 70 industry leaders and was compiled by Intermedia “with input and support developed through solid relationships with among others the Ministry of Finance, the Bankers’ Association of Namibia, Bank of Namibia, Namfisa and the insurance industry”.”Thus in essence the NFSR is a true representation of full, open, honest and transparent co-operation by the entire industry to provide the public and other business sectors with a comprehensive overview of the financial sector,” Intermedia said in a statement.Schlettwein, who was speaking on behalf of the Deputy Minister of Finance, said the financial sector still had a long way to go to achieve true accessibility to its services, adding that local bank charges remain high compared to international standards.Schlettwein also took issue with penalty fees by banks, saying these charges should “only reflect the true cost to the bank, and not be abused as a revenue earner”.He further reminded banks of the current difficult economic situation faced by Namibians, particularly lower-income groups.”Lenders should be more innovative and creative, and instead of just repossessing, try to find other means of bridging a difficult period for their clients.”He proposed that banks instead should consider restructuring debt and “being more flexible at a time when customers are affected by things beyond their control”.Touching on the recent amendments to the Pension Funds Act and the Long-Term Insurance Act, Schlettwein said these changes were primarily aimed at developing the domestic financial markets.The editor of the Review, Sarah Taylor, lamented the critical shortage of local expertise in the financial sector and expressed the hope that the publication would stimulate interest among students in a sector “that is in need of local and specialised skills, specifically in the under-developed but burgeoning areas of private equity and asset management”.”These two areas will become more prominent following the regulatory changes to investment requirements that were passed earlier this year,” Taylor said.The 160-page 2008 edition of the Namibia Financial Sector Review contains interviews with 70 industry leaders and was compiled by Intermedia “with input and support developed through solid relationships with among others the Ministry of Finance, the Bankers’ Association of Namibia, Bank of Namibia, Namfisa and the insurance industry”.”Thus in essence the NFSR is a true representation of full, open, honest and transparent co-operation by the entire industry to provide the public and other business sectors with a comprehensive overview of the financial sector,” Intermedia said in a statement.Schlettwein, who was speaking on behalf of the Deputy Minister of Finance, said the financial sector still had a long way to go to achieve true accessibility to its services, adding that local bank charges remain high compared to international standards.Schlettwein also took issue with penalty fees by banks, saying these charges should “only reflect the true cost to the bank, and not be abused as a revenue earner”.He further reminded banks of the current difficult economic situation faced by Namibians, particularly lower-income groups.”Lenders should be more innovative and creative, and instead of just repossessing, try to find other means of bridging a difficult period for their clients.”He proposed that banks instead should consider restructuring debt and “being more flexible at a time when customers are affected by things beyond their control”.Touching on the recent amendments to the Pension Funds Act and the Long-Term Insurance Act, Schlettwein said these changes were primarily aimed at developing the domestic financial markets.The editor of the Review, Sarah Taylor, lamented the critical shortage of local expertise in the financial sector and expressed the hope that the publication would stimulate interest among students in a sector “that is in need of local and specialised skills, specifically in the under-developed but burgeoning areas of private equity and asset management”.”These two areas will become more prominent following the regulatory changes to investment requirements that were passed earlier this year,” Taylor said.