Namibia: Credit and data providers can now share borrowers' information
The BoN said this will enable credit providers to undertake effective credit risk assessment.Namibian credit and data providers can now share borrowers' information through the Namibia Data Sharing Alliance (NDSA), the Bank of Namibia (BoN) has revealed.
It said it granted the authorisation to enable credit providers to undertake effective credit risk assessment based on available credit history, where the borrower is able to negotiate for better credit terms based on their good credit history.
BoN governor Ipumbu Shiimi said the launch of NDSA comes at a time when the bank is in the process of implementing the regulatory framework for credit bureaus, the Namibian reports.
He explained that credit providers in Namibia are now required to provide performance information to all registered credit bureaus, and that the provision is there to ensure that a complete picture of individual borrowers is obtained, and to enable comprehensive affordability assessments to be done with a view to curb over-indebtedness of customers.
"This is in line with the bank's mandate of enhancing and maintaining stability in the financial sector," he said.
Credit to the private sector reached a total N$66,8 billion (€4.6 billion) in outstanding credit at the end of 2014, according to a report from Namibian stockbroking firm IJG Securities.
On an annual basis, Private Sector Credit Extension (PSCE) growth accelerated by 0.1 percentage points, to 16.4 per cent.
"The continued growth in PSCE is indicative of the strength of the Namibian economy even amid global divergence and South African weakness," the report said.