Windhoek:Namibia's banking sector has demonstrated strong resilience, maintaining robust capitalization, profitability, and liquidity throughout the first half of 2026, even as cyber threats grow, the Bank of Namibia reported.

According to NAMPA, the central bank's October 2026 Financial Stability Report highlights that the sector's financial standing improved due to sufficient capital and liquidity reserves, better asset quality, and an increase in high-quality liquid assets. The report noted that the banking sector saw a significant rise in total eligible capital, which climbed by N$2.2 billion, reaching N$24.4 billion by June 2026.

The report further revealed that the total risk-weighted capital ratio ascended by 1.3 percentage points to 18.6%, and the Tier 1 capital ratio rose by 1.4 percentage points to 17.0%, both exceeding the regulatory minimums of 12.5% and 10%, respectively. Stress test results confirmed the sector's ability to withstand potential adverse macro-financial scenarios.

However, cyber risks were identified as a significant concern, with an increased probability of materializing in the latter half of 2026, potentially impacting financial stability. The Communications Regulatory Authority of Namibia's cybersecurity report indicated a 39% surge in detected cyber vulnerabilities, totaling 513,921 in the second quarter of 2026, and a 56% rise in cyber events, reaching 109,593.

The Bank of Namibia emphasized the importance of continuing to enhance cybersecurity measures through the Financial Sector Cyber Security Council to safeguard the financial system's integrity. Despite these emerging vulnerabilities, the central bank assessed the overall risks to Namibia's financial stability as low to moderate amid ongoing global and domestic economic uncertainties.