Regulatory Alerts2025-10-07
Circular on Early Warning System and Prompt Corrective Action
The Bank of Namibia has issued Circular BIA 02/25 to mandate an Early Warning System and Prompt Corrective Action framework for all banking, microfinance, and controlling institutions. The circular establishes specific capital, credit, earnings, and liquidity ratios with defined target and trigger thresholds to identify financial weaknesses, alongside discretionary and statutory enforcement measures ranging from management letters to monetary penalties and corrective orders. Institutions must submit remediation action plans with timelines, demonstrate sustained compliance for at least six months to qualify for waivers, and return a signed acknowledgement of receipt within one month.
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