Regulatory Alerts2026-04-23
Preference Shares Held by Banking Institutions in Companies
The Bank of Namibia requires banking institutions to report preference shares in non-banking companies under Loans and Advances rather than investments, mandating large exposure reporting for facilities exceeding 10% of capital. Case-by-case exemptions from Section 39(2) restrictions are granted when transactions benefit Namibia, secure Receiver of Revenue approval, and remain within the institution's capital adequacy surplus. Existing preference share holdings may mature but cannot be renewed without the Bank's explicit approval.
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