Regulatory Alerts2024-08-20
Bank of Namibia Determination on Microfinance Banking Institutions
The Bank of Namibia issued this determination to establish comprehensive regulatory requirements for all authorized microfinance banking institutions operating in the country. It classifies these entities as either nationwide or branch operations, mandating minimum core capital thresholds of N$22.5 million and N$7.5 million respectively, alongside strict leverage and risk-based capital ratios. The framework further enforces single borrower limits of N$200,000 for individuals and N$1.5 million for enterprises while requiring institutions to maintain at least 70 percent of their loan portfolios in micro and small enterprise credits.
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