Namibia’s banking sector assets rose by 3.1% to N$184.7 billion in the third quarter of 2025 as the country’s financial system remains sound and stable, according to the latest assessment by the Bank of Namibia.
Deputy Governor Ebson Uanguta said this was confirmed during the Macroprudential Oversight Committee’s second meeting of the year, held on Thursday.
“After a thorough assessment of the global and domestic macro-financial developments and its potential impact on domestic financial stability, the Committee concluded that the domestic financial system remains sound and stable, and it continues to operate without disruptions,” Uanguta said.
He added that both the banking and non-banking sectors remain well capitalised with sufficient liquidity buffers to withstand potential shocks.
The banking sector’s return on equity increased to 20%, while the risk-weighted capital ratio stayed above the prudential requirement of 12.5%. Non-performing loans improved slightly to 4.8%, supported by better mortgage repayments.
Uanguta said non-bank financial institutions continued to show resilience, supported by favourable market performance.
“Both the retirement fund and long-term insurance subsectors maintained allocations exceeding 60% of assets in equities and bonds, contributing to investment returns that outpaced domestic inflation,” he said.
The MOC reported that Namibia’s interbank and settlement systems operated smoothly with no material interruptions during the review period, helping reduce settlement risks and supporting overall economic activity.
Property market vulnerabilities linked to mortgage affordability remained contained, with expectations of improvement as monetary policy and fiscal conditions ease.
Given the current environment, Uanguta said no new macroprudential measures will be introduced.
“The current active macroprudential policy measure, alongside existing microprudential regulation and ongoing supervisory measures, are considered sufficient for the current macro-financial environment. The Committee will continue to closely monitor both the global and domestic economic and financial conditions and stand ready to deploy appropriate macroprudential policy measures should conditions warrant a policy response,” he said.
