Regulatory Alerts1998-06-08
Added · Updated
Application of Set-Off and Cash-Management Schemes
The circular permits banking institutions to report net balances by setting off debit and credit balances only if a legal right of set-off exists, balances relate to the same person, share the same currency, and have identical maturities. Set-off is prohibited for clients outside Namibia, excluding foreign banking institutions. Cash management scheme balance reductions are allowed only for subsidiaries included in a holding company's consolidated statements, requiring actual transaction recording, client statements, legal authorization, and Bank approval for standardized agreements involving different legal entities.
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