A study conducted by the Bank of Namibia (BoN) into the fees and charges currently imposed by banks across the country has been completed.
The assessment, carried out amid widespread public concern over the high cost of banking services, will now be submitted to the Ministry of Finance to support the finalisation of new regulations.
BoN Governor Johannes !Gawaxab announced the completion of the impact assessment during his appearance before the Parliamentary Standing Committee on Economy and Industry, Public Administration and Planning on Tuesday, 24 June.
He explained that the study is intended to inform regulations under Section 107 of the Banking Institutions Act of 2023, which aims to curb excessive banking fees.
“He further reported that BoN has concluded the impact assessment on fees and charges and this assessment will soon be shared with the Ministry of Finance to finalise the regulations on the same in line with Section 107 of the Banking Institutions Act of 2023, aimed at curbing the high cost of banking services,” Parliament said.
Members of the Committee praised the Bank for fulfilling its mandate effectively but highlighted several key areas that require ongoing attention.
These include managing inflation, ensuring the new gold investment strategy does not jeopardise foreign exchange reserves, and strengthening the Bank’s internal capacity to respond to an increasingly complex economic environment.
The Committee also urged BoN to improve its ability to conduct stress testing and crisis simulations and to ensure operational expenses remain within reasonable limits.
“The members emphasised, among others, that BoN should strengthen its capacity in key central banking functions to better manage the economy, which is increasingly becoming complex. Continue to contribute to financial stability by developing more capacity in stress testing and crisis simulation,” the Committee said.
The study itself examined transparency and disclosure practices alongside the broader supply and demand dynamics within Namibia’s banking sector. It follows a similar review conducted by the Ministry of Finance in 2010, which first exposed the excessive fees associated with banking products and services.
This latest assessment also compared Namibia’s fee structures with those of other countries.
Furthermore, the report focused on consumer concerns related to fees and charges, particularly issues around transparency and disclosure, providing a comprehensive analysis of consumer needs and challenges.
The Bank of Namibia’s findings are expected to shape regulatory measures designed to reduce the cost burden on consumers and enhance fairness and transparency in the banking sector.
