Regulatory Alerts2018-08-24
Determination on Measurement and Calculation of Capital Charges for Credit, Operational and Market Risk for Domestic Systemically Important Banks (BID-5A)
The Bank of Namibia issued a determination under the Banking Institutions Act, 1998 to standardize capital charge measurements for credit, operational, and market risk across Domestic Systemically Important Banks. The regulation mandates minimum capital adequacy ratios of 6 percent for Common Equity Tier 1, 7.5 percent for Tier 1 capital, and 10 percent for total capital, while establishing standardized calculation approaches aligned with Basel III reforms. Effective 1 September 2018, designated banking institutions and groups must maintain these capital buffers, comply with leverage ratio backstops, and fulfill ongoing reporting obligations to ensure sector-wide financial stability.
Share