Regulatory Alerts2024-10-23
Determination on Recovery Plans
The Bank of Namibia has issued Determination BID-36 to mandate all authorized banking and microfinance institutions, alongside controlling companies, to develop and maintain comprehensive recovery plans. These plans must be tailored to each entity’s size and complexity, incorporating robust governance structures, stress-testing frameworks, early-warning recovery triggers, and a credible menu of capital and liquidity options. The Board of Directors bears primary responsibility for implementing and regularly reviewing these plans to ensure financial stability, rapid distress recovery, and the uninterrupted functioning of critical services across Namibia’s banking sector.
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