Regulatory Alerts1998-07-03
Clarification Relating to Determinations on Minimum Local Assets (BID-7)
The Bank of Namibia issued Circular BIA 6/98 to clarify the definition of local assets under its Minimum Local Assets Determinations (BID-7). This clarification explicitly includes debit balances denominated in South African Rand held in clearing accounts with associate banks in South Africa, provided they are situated within Namibia. Banking institutions must return a completed, external auditor-co-signed acknowledgment of receipt to the Bank's supervision office.
Bank of Namibia Correspondence to: P.O. Box 2882, Windhoek, Namibia Tel: +264-61-220486 Fax: +264-61-220154 Telex (0908) 710, Swift Code: CBKNNANX
Financial Institutions Department 3rd Floor, Sanlam Centre 154 Independence Avenue Windhoek
BANKING INSTITUTIONS ACT
CIRCULAR BIA 6/98
TO: ALL BANKING INSTITUTIONS
DATE: 3 JULY 1998
CLARIFICATION RELATING TO DETERMINATIONS ON MINIMUM LOCAL ASSETS (BID - 7) ISSUED UNDER THE BANKING INSTITUTIONS ACT, 1998 (ACT NO. 2 OF 1998)
- BACKGROUND
This Circular is issued to provide clarification on the definition of "local assets" as defined under paragraph 3 of the Determinations on Minimum Local Assets (BID - 7) issued under the Banking Institutions Act, 1998 (Act No. 2 of 1998).
- CLARIFICATION
For purposes of paragraph 3 of Determinations BID-7, assets denominated in "Namibia Dollar and situated in Namibia" shall also include debit balances denominated in South African Rand (ZAR) in the clearing account held by Namibian banking institutions with their associate banks in South Africa.
- Two additional copies of this Circular are enclosed for the use of your institution's external auditors. The attached acknowledgment of receipt duly completed and co-signed by the said auditors should be returned to this Office at your earliest convenience.
R W LAWRENCE SENIOR MANAGER: BANK SUPERVISION DEPARTMENT