IMF Staff Country Reports

Namibia: Financial System Stability Assessment

Publication Date:

March 15, 2018

Electronic Access:

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Summary:

The paper assesses the stability of Namibia’s financial system. Macrofinancial vulnerabilities have built up over a period of rapid economic growth in Namibia, and the financial cycle has now turned down. The sovereign debt/GDP ratio has nearly doubled since 2014 which has reinforced the already strong bank-sovereign link. The rapid rise in housing prices and household debt, banks’ large exposure to mortgages, and banks reliance on wholesale funding are sources of concern. A major decline in real estate prices would adversely affect bank capital and profitability. Financial sector oversight has been strengthened significantly since the 2006 Financial System Assessment Program, but further upgrades are needed.

Series:

Country Report No. 2018/077

Subject:

Banking Commercial banks Expenditure Financial institutions Financial regulation and supervision Financial services Insurance companies Nonbank financial institutions Pension spending