Bank of Namibia working on Basel III implementation
The Central Bank of Namibia (BoN) has announced this week that it is about to present a position paper to discuss the implementation of Basel III in Namibia with the banking industry.The Central Bank of Namibia (BoN) has announced this week that it is about to present a position paper to discuss the implementation of Basel III in Namibia with the banking industry.
The Basel III reforms have been developed in response to the financial crisis, in a bid to strengthen the regulation, supervision and risk management of the banking sector and increase the transparency and disclosure requirements of banks.
If implemented in Namibia, banks would be forced to raise their capital or reduce their balance sheet in order to own a level of capital stock proportional to their risk exposure.
BoN spokesman Ndangi Katoma said in an interview with The Namibian that the position paper should help assess the feasibility, impact and readiness of the country regarding Basel III and will inform the central bank on whether or not to implement Basel III or only adopt certain components.
"It should also be noted that Namibia remains one of the very few countries in Africa that have implemented Basel II, the rest of the continent is still on Basel I," he added.