Regulatory Alerts2020-04-01
Determination on Policy Changes in Response to Economic and Financial Stability Challenges Following the COVID-19 Pandemic
The Bank of Namibia has issued Determination BID-33 to relax key regulatory requirements for banking institutions, mitigating economic and financial stability challenges exacerbated by the COVID-19 pandemic. The policy introduces loan repayment moratoriums of up to twenty-four months, extends the write-off timeline for loss-classified assets with progressive collateral haircuts, reduces the capital conservation buffer to zero percent, and postpones stricter single-borrower concentration limits. These measures, effective upon gazette publication and valid for two years, enable banks to absorb impaired loans while sustaining credit flow to vulnerable sectors of the real economy.
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