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Bank of Namibia

Financial Stability and Macroprudential Oversight

Summary

Find out more about Financial Stability and Macroprudential Oversight .

Financial Stability and Macroprudential Oversight

The Financial Stability and Macroprudential Oversight Department is responsible for supporting the Bank with maintaining a stable and inclusive financial system and for ensuring effective macroprudential oversight. The stability of the financial system is a catalyst for growth and development in the financial sector and the Namibian economy as a whole. In this regard, the Department supports the Macroprudential Oversight Committee (MOC) of the Bank of Namibia with the formulation of macroprudential policies and the application of these policies in order to reduce systemic risks to the financial system. The Department provides administrative and operational support to the Namibia Deposit Guarantee Authority (NDGA); assists the Bank of Namibia with resolving distressed domestic systemically important banks (DSIBs); and assists the Namibia Financial Institutions Supervisory Authority (NAMFISA) with resolving systemically important financial institutions (SIFIs) in Namibia.

The Department comprises of the Financial Stability and Macroprudential Surveillance, Resolution and Deposit Insurance functions


 Financial Stability & Macroprudential Surveillance

The Financial Stability and Macroprudential Surveillance function is responsible for monitoring the risks that have the potential of developing into a systemic crisis; monitoring the vulnerabilities of the financial system in Namibia, which consists of financial markets, financial instruments, financial institutions, and infrastructure. This monitoring is exercised through input from and consultations with the Namibia Financial Institutions Supervisory Authority (NAMFISA) which is the non-bank financial institutions regulator, the Ministry of Finance, as well as other stakeholders.

The Bank of Namibia Act, 2020 (Act No. 1 of 2020) makes provision for the establishment of the Financial System Stability Committee (FSSC), which serves in an advisory capacity and affords recommendations to the Macroprudential Oversight Committee (MOC) for remedial action, when necessary.

Therefore, the function is responsible for the effective identification and assessment of the strengths, risks, weaknesses, and vulnerabilities in the financial system; and for assessing the resilience of the financial system against domestic and external shocks, using macroeconomic and macroprudential analyses. These analyses serve as the basis for the formulation of macroprudential policies and regulations.


 Resolution and Deposit Insurance

The Resolution and Deposit Insurance functions are responsible for ensuring the existence and operationalisation of an effective resolution framework for failing financial institutions. This framework ensures the resolvability of systemically important banking institutions (SIFIs) in order to minimise the devastating impacts associated with bank failure. The function also oversees the effective administration of the operations of the Namibia Deposit Guarantee Authority (NDGA). The NDGA was established in terms of the Namibia Deposit Guarantee Act, 2018 (Act No. 16 of 2018). The NDGA is mandated to manage the Deposit Guarantee Scheme, whose main objective is to protect depositors against the loss of their deposits in the event of a bank failure.


 Departmental Management
Mr Petrus Shifotoka

Deputy Director: Resolution and Manager of Operations, NDGA

Ms Anna William

Deputy Director: Financial Stability and Macroprudential Surveillance

 Contacts

For general Financial Stability and Macroprudential Oversight Department enquiries, contact the Director’s Office at:

     Tel: +264 61 283 5044
Ms Florette Nakusera - Director: Financial Stability and Macroprudential Oversight Department & Head of the Namibia Deposit Guarantee Authority (NDGA) - Bank of Namibia
Ms Florette Nakusera

Director: Financial Stability and Macroprudential Oversight Department & Head of the Namibia Deposit Guarantee Authority (NDGA)


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