The Parliament Standing Committee on Economics and Public Administration has urged the government to approve and implement clear regulations to oversee bank charges, arguing that commercial banks must operate fairly and transparently.
Chairperson of the Committee, Natangue Ithete, made this call as the Bank of Namibia (BoN) conducted a comprehensive study on user fees and charges in response to persistent public concerns over high banking costs.
Presenting the report of the Standing Committee on Economics and Public Administration, Ithete stressed the need for a thorough investigation into the conduct of commercial banks in Namibia.
“Following consultations with key stakeholders in the banking sector, the Committee found that there is no clear regulation on bank charges, despite the Minister of Finance and Public Enterprises being mandated under the Payment Management System Act and the Banking Institutions Act to regulate and prescribe maximum bank charges,” Ithete said.
The push for regulation follows a 2010 study by the Ministry of Finance, which initially highlighted excessive fees associated with Namibian banking products and services.
Popular Democratic Movement President McHenry Venaani also weighed in, accusing banks of enforcing strict financing policies that hinder homeownership in Namibia.
“This matter is very dire. People earning N$40,000 a month are renting because they can’t qualify for a house, as banks are not financing Members of Parliament. Now, just imagine—if a Member of Parliament earning N$40,000 cannot qualify to buy a house in this country, what about the rest of society? People are living in the doldrums of Windhoek, in shacks, working as police officers, soldiers, and government civil servants, yet they can’t afford homes because banks have a rigorous process of over-profiteering on housing,” Venaani said.
Ithete further called for urgent amendments to the Bank of Namibia Act to strengthen regulatory oversight of bank charges and enhance consumer protection.
“The Bank of Namibia has mechanisms in place for banks to justify their charges, yet these charges remain largely set at the discretion of financial institutions, often based on credit history. While some reforms are underway, including the Consumer Protection Policy, amending the Bank of Namibia Act remains critical to ensuring a fair and transparent banking system,” he said.
The Standing Committee has recommended that the Ministry of Finance and Public Enterprises establish clear regulations to oversee bank charges and prevent unfair banking practices.
Ithete emphasized that without effective oversight, consumers will continue to be disadvantaged, making regulatory intervention an urgent necessity.
The committee has submitted its recommendations for approval and implementation by the relevant Offices, Ministries, and Agencies, urging swift action to protect Namibian consumers from excessive banking fees.
