Plans to Further Regulate Namibian Banking Sector

THE Namibian Government plans to table stricter legislation focusing on the banking industry in a bid to reduce flaws in the sector, the Bank of Namibia revealed.

Speaking at the release of the Bank of Namibia annual report, central bank Governor, Ipumbu Shiimi, revealed that the bank had done thorough consultations on the banking legislation meant to improve the sensitive sector.

“We have done our research and we are sure that the minister will soon be taking a few bills to the parliament concerning the banking sector for debate and consideration,rdquo Shiimi said.

Although he did not divulge much detail in the banking legislation being mooted, Shiimi said the proposed legislations will be for the betterment of the country’s financial services charter.

The Bank of Namibia has embarked on a raft of changes meant to push commercial banks to introduce services for the poor and the low-income earners to find access to the banking sector.

The local banking industry is considered to have high transaction fees which have left the majority of the people who are in the low income earning bracket outside the banking sector and preferring other means of saving their money.

Part of the changes introduced in the Namibian banking sector also included the introduction of the basic bank accounts that come with no charges for opening the account or depositing money.

The central bank, together with the Banking Association of Namibia, eliminated cross border cheques in a bid to clamp down on fraud.

Source : CAJ News Agency