Namibian banks unaffected by impending SA bank strike

The Namibian banking system will not be affected by the impending South African bank strike on Friday.

Responding to fears by the public that the Namibian banking system and commercial would be affected by the strike, Bank of Namibia(BoN) told Nampa upon enquiry Wednesday that although some Namibian commercial banks are partly owned by South African banking groups, they are separate entities, in different jurisdictions.

Therefore, what happens in South Africa cannot be assumed to automatically spill over to Namibia. However, the Bank does not expect the banking system to be impacted adversely by the downtime in South Africa.

BoN's Deputy Director for Corporate Communications, Kazembire Zemburuka said in relation to the payment system in Namibia, the Bank had issued the Determination on localisation of core banking systems (BID 19), which became effective on 11 August 2008.

'Under this Determination, core banking systems must be localised in order to support safety and efficiency in the National Payment System and financial sector as a whole,' he stated.

The main objective of the Determination was to ensure that the banking system is not affected by activities in the South African banking or financial system, such as public holidays or where systems in South Africa are down or where the fiber optic linkages between Namibia and South Africa are malfunctioning.

Several commercial banks on Wednesday also informed their customers that the strike would not impact their services and that all banking services would be available.