Regulatory Alerts2007-05-14
Bank of Namibia Country Risk Management Determination (BID-17)
The Bank of Namibia issued Determination BID-17 to mandate all authorized domestic banks to establish robust, board-approved frameworks for identifying, measuring, and controlling cross-border country risks. The regulation requires banks to implement comprehensive risk analysis and rating systems, set prudential exposure limits on solo and consolidated bases, and maintain adequate provisioning and stress testing mechanisms. Banks must ensure competent staffing, clear reporting protocols, and periodic policy reviews to align cross-border lending with strategic goals while mitigating sovereign, transfer, contagion, currency, and macro-economic exposures.
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