Clarification Relating to Determinations on Minimum Local Assets (BID-7)

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)

1. 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).

2. 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.

3. 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