Regulatory Alerts2019-08-28
The Determination on Liquidity Risk Management
The Bank of Namibia has issued a new Liquidity Risk Management Determination requiring all authorized banking institutions to maintain robust liquidity management strategies and hold liquid assets averaging at least 10 percent of their total daily liabilities to the public. The regulation mandates monthly reporting using a maturity mismatch approach, enforces specific limits on liquidity mismatches across time bands, and requires boards to implement dynamic contingency funding plans for stress scenarios. Effective September 2019, this framework supersedes the previous Minimum Liquid Assets Determination and grants the central bank authority to adjust behavioral liquidity adjustments and enforce remedial measures during funding disruptions.
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