2026-06-19
Added · Updated
This Determination establishes the Countercyclical Capital Buffer (CCyB) framework for Domestic Systemically Important Banking institutions (DSIBs) in Namibia, setting the initial CCyB rate at zero percent. It mandates that the buffer, ranging from 0 to 2.5 percent, be composed entirely of Common Equity Tier 1 capital and calculated based on aggregate risk-weighted assets. DSIBs are required to submit quarterly capital reporting returns and must comply with any adjusted CCyB rates within 12 months of a directive, unless a shorter period is justified. The Bank of Namibia retains the authority to adjust the rate based on systemic risk and credit-to-GDP gaps to enhance banking sector resilience.