Launch of the April 2025 Financial Stability Report

THE JUST RELEASED APRIL 2025 FINANCIAL STABILITY REPORT CONCLUDES THAT THE NAMIBIAN FINANCIAL SYSTEM REMAINED SOUND AND RESILIENT IN 2024, DESPITE VULNERABILITIES ARISING FROM THE GLOBAL ENVIRONMENT.
 

HIGHLIGHTS:

1. The Namibian financial system, which is made up of the banking and non-banking sectors, as well as the payment system and infrastructure, continued to be stable, sound and resilient throughout 2024.
2. The banking sector remained well-capitalised, profitable and liquid in 2024, with notable improvement in asset quality.
3. The NBFI sector demonstrated remarkable resilience in 2024, with aggregate assets growing faster than the prevailing inflation rate.
4. The National Payment System and infrastructure remained stable, while efficiently contributing towards reliability in payments.
5. Activity in the domestic economy expanded in 2024, although at a slower pace than in 2023 due to weak performance in the primary industry.
6. Household debt to disposable income declined in 2024 as household income improved owing to salary increments and tax relief measures instituted by the Government.
7. Global growth remained stable in 2024 and is projected to slow during 2025 due to increased uncertainty surrounding trade tensions and policy.
8. The Bank implemented key regulatory interventions to strengthen financial sector stability and resilience.
9. To reinforce the resilience of the banking sector, the Macroprudential Oversight Committee (MOC) advanced preparations and industry consultations on the countercyclical capital buffer framework.
10. The MOC also approved the use of the growth-at-risk model to strengthen macroprudential surveillance in Namibia. These interventions reinforce the Bank's commitment to strengthening financial system stability and broader economic sustainability.