By: Staff Writer

 

The Bank of Namibia (BoN) has introduced advanced supervisory measures to strengthen the stability and resilience of the banking sector.

Guided by the Basel Core Principles, the updated Early Warning System (EWS) and Prompt Corrective Action (PCA) frameworks are designed to proactively identify and address risks before they escalate.

One key enhancement is the introduction of a unified Non-Performing Loans (NPL) trigger ratio of 6.0%, which replaces the previous dual metrics.

Acting Director of Strategic Communications and International Relations at BoN, Naufiku Hamunime, highlighted the significance of this development.

“The integration of the Early Warning System and Prompt Corrective Action frameworks underscores our proactive approach to supervision, ensuring the banking sector remains stable, resilient, and prepared to absorb risks from evolving macroeconomic conditions,” she stated.

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