BoN poorly equipped to control banks

Address gaps with legislation, BoN governor suggests
BoN governor Johannes !Gawaxab emphasised that banks are profit-driven entities but suggested legislative intervention in cases of potential market conduct issues.
Ogone Tlhage
The Bank of Namibia (BoN) is not adequately empowered to regulate the market conduct of commercial banks, the central bank's governor, Johannes !Gawaxab, said.

He emphasised the need for legislative measures to address this weakness while speaking at a parliamentary committee hearing into the conduct of commercial banks in Namibia.

It follows concerns that banks are profiteering off the prime lending rate, which is the rate at which banks lend money to the public and businesses, amid general complaints that the current rate is excessive.

“If you believe that banks are discriminatory, that is a market conduct issue, and I have to admit, we’ve got a gap there. We need to close that gap; that is a gap we have in our legislation,” Gawaxab said.

Business models

He stressed that commercial banks are – by the nature of their existence – driven towards principally making profit for their owners.

“We need to accept that banks are businesses, and they have a strong business motive. They are there to make money and that should be accepted. I personally do not see a problem with banks making money and it should be accepted when banks make a profit,” the governor said.

“Where there is scope that commercial banks may be colluding, it’s a matter for lawmakers to intervene through legislative avenues. If we see there are market conduct issues, we need to discuss that,” he said.

New financial strategy

!Gawaxab informed lawmakers that there was leeway – in the crafting of a new financial sector strategy – to introduce policy interventions that would cater to Namibia’s development needs and the well-being of the banking public.

The strategy, which ran from 2011 to 2021, sought to bring about increased financial inclusion of the banking public, increased access to financial services and products, the localisation of the financial sector and the development of local skills in the financial sector, among other things.

“A new strategy will be prepared. That strategy is another avenue; if you still feel there needs to be something done with the financial sector, that’s an opportunity,” he said.

The central bank would soon take finance minister Ipumbu Shiimi through proposed interventions that it will seek to adopt in the new strategy, !Gawaxab said.

“We are busy crafting the new financial strategy. We will take it through to the ministry of finance, and the minister will go through consultations. If you believe there needs to be more to transform the financial sector, that is an avenue you need to consider.”

Comments

Namibian Sun 2024-11-07

No comments have been left on this article

Please login to leave a comment

Premier League: Fulham 2 vs 1 Brentford Katima Mulilo: 22° | 36° Rundu: 20° | 31° Eenhana: 21° | 31° Oshakati: 21° | 31° Ruacana: 20° | 31° Tsumeb: 19° | 26° Otjiwarongo: 18° | 23° Omaruru: 20° | 32° Windhoek: 17° | 29° Gobabis: 19° | 28° Henties Bay: 16° | 22° Wind speed: 19km/h, Wind direction: SW, Low tide: 12:28, High tide: 06:39, Low Tide: 00:56, High tide: 18:52 Swakopmund: 15° | 18° Wind speed: 19km/h, Wind direction: W, Low tide: 12:26, High tide: 06:37, Low Tide: 00:54, High tide: 18:50 Walvis Bay: 15° | 24° Wind speed: 23km/h, Wind direction: W, Low tide: 12:26, High tide: 06:36, Low Tide: 00:54, High tide: 18:49 Rehoboth: 20° | 30° Mariental: 22° | 35° Keetmanshoop: 24° | 36° Aranos: 20° | 34° Lüderitz: 14° | 24° Ariamsvlei: 22° | 36° Oranjemund: 15° | 24° Luanda: 25° | 27° Gaborone: 19° | 27° Lubumbashi: 17° | 33° Mbabane: 13° | 24° Maseru: 12° | 25° Antananarivo: 14° | 30° Lilongwe: 22° | 29° Maputo: 19° | 26° Windhoek: 17° | 29° Cape Town: 17° | 22° Durban: 16° | 23° Johannesburg: 15° | 26° Dar es Salaam: 26° | 31° Lusaka: 20° | 31° Harare: 17° | 30° Currency: GBP to NAD 22.47 | EUR to NAD 18.73 | CNY to NAD 2.43 | USD to NAD 17.37 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.25 | EGP to NAD 0.34 | KES to NAD 0.13 | NGN to NAD 0.01 | ZMW to NAD 0.63 | ZWL to NAD 0.04 | BRL to NAD 3.07 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 133.29 | USD to AOA 909.05 | USD to BWP 13.4 | USD to EGP 49.25 | USD to KES 129.2 | USD to NGN 1668.91 | USD to ZAR 17.38 | USD to ZMW 26.9 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1858.03 Down -1.09% | Casablanca Stock Exchange (CSE) MASI 14296.93 Down -0.02% | Egyptian Exchange (EGX) 30 Index 31045.26 Up +0.82% | Botswana Stock Exchange (BSE) DCI 9878.53 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 681.54/OZ UP +0.65% | Copper US$ 4.39/lb UP +3.95% | Zinc US$ 3 092.50/T UP 3.78% | Brent Crude Oil US$ 75.16/BBP DOWN -0.0046 | Platinum US$ 988.88/OZ UP +0.47% Sport results: Premier League: Fulham 2 vs 1 Brentford Weather: Katima Mulilo: 22° | 36° Rundu: 20° | 31° Eenhana: 21° | 31° Oshakati: 21° | 31° Ruacana: 20° | 31° Tsumeb: 19° | 26° Otjiwarongo: 18° | 23° Omaruru: 20° | 32° Windhoek: 17° | 29° Gobabis: 19° | 28° Henties Bay: 16° | 22° Wind speed: 19km/h, Wind direction: SW, Low tide: 12:28, High tide: 06:39, Low Tide: 00:56, High tide: 18:52 Swakopmund: 15° | 18° Wind speed: 19km/h, Wind direction: W, Low tide: 12:26, High tide: 06:37, Low Tide: 00:54, High tide: 18:50 Walvis Bay: 15° | 24° Wind speed: 23km/h, Wind direction: W, Low tide: 12:26, High tide: 06:36, Low Tide: 00:54, High tide: 18:49 Rehoboth: 20° | 30° Mariental: 22° | 35° Keetmanshoop: 24° | 36° Aranos: 20° | 34° Lüderitz: 14° | 24° Ariamsvlei: 22° | 36° Oranjemund: 15° | 24° Luanda: 25° | 27° Gaborone: 19° | 27° Lubumbashi: 17° | 33° Mbabane: 13° | 24° Maseru: 12° | 25° Antananarivo: 14° | 30° Lilongwe: 22° | 29° Maputo: 19° | 26° Windhoek: 17° | 29° Cape Town: 17° | 22° Durban: 16° | 23° Johannesburg: 15° | 26° Dar es Salaam: 26° | 31° Lusaka: 20° | 31° Harare: 17° | 30° Economic Indicators: Currency: GBP to NAD 22.47 | EUR to NAD 18.73 | CNY to NAD 2.43 | USD to NAD 17.37 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.25 | EGP to NAD 0.34 | KES to NAD 0.13 | NGN to NAD 0.01 | ZMW to NAD 0.63 | ZWL to NAD 0.04 | BRL to NAD 3.07 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 133.29 | USD to AOA 909.05 | USD to BWP 13.4 | USD to EGP 49.25 | USD to KES 129.2 | USD to NGN 1668.91 | USD to ZAR 17.38 | USD to ZMW 26.9 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1858.03 Down -1.09% | Casablanca Stock Exchange (CSE) MASI 14296.93 Down -0.02% | Egyptian Exchange (EGX) 30 Index 31045.26 Up +0.82% | Botswana Stock Exchange (BSE) DCI 9878.53 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 681.54/OZ UP +0.65% | Copper US$ 4.39/lb UP +3.95% | Zinc US$ 3 092.50/T UP 3.78% | Brent Crude Oil US$ 75.16/BBP DOWN -0.0046 | Platinum US$ 988.88/OZ UP +0.47%