Namibia: BoN planning large banking reforms
The Bank of Namibia (BoN) yesterday (August 29th) announced proposed amendments to the Banking Institutions Act designed to streamline the banking industry and open the market for smaller banks.The Bank of Namibia (BoN) yesterday (August 29th) announced proposed amendments to the Banking Institutions Act designed to streamline the banking industry and open the market for smaller banks.
wants to introduce requirements for banks
to have recovery plans that will detail how to resolve a financial problem when dealing with weak or distressed financial
New Era reports.
It is also looking at implementing a differentiated regulatory framework for micro-finance banks
and introducing limits on foreign shareholding in banking
"Significant changes have taken place in the local and international arena since the financial crisis, which warrant the review of the current legal framework and regulatory provisions. Therefore, it is important for Namibia, like other countries, to introduce mechanisms and regulatory changes to diligently safeguard the soundness of its national banking system," said Assistant Governor Michael Mukete, quoted by the news source.
The Bank is also proposing several credit bureau regulations and Mr Mukete added that while existing credit bureaus operate in the country, these entities need to be governed by national legislation.
He stressed that there is currently no centralized credit information system that allows banks and other lenders to know the total exposure per client and their credit history.