Windhoek: Namibia's banking sector remained resilient, with asset quality improving as the non-performing loans (NPL) ratio declined to 4.3 per cent. Bank of Namibia (BoN) Deputy Director for Financial Stability and Macroprudential Surveillance, Anna William, revealed this during the technical presentation of the April 2026 Financial Stability Report on Thursday. According to Namibia Press Agency, William said the decline in the NPL ratio shows that banks are managing credit risk effectively, while clients are also servicing their debt. She noted that the banking sector remains profitable, liquid, and well-capitalised, with total assets growing by 5.1 per cent to N$188 billion. Addressing household and corporate debt, William said the central bank's main concern is excessive increases in borrowing. "If this debt remains high but quite steady, somewhat plateauing, yes, we monitor it. But when we see a spike, an excessive sudden increase, that is a cause for concern," she said. She said the risks remained unc hanged, with the probability of a systemic debt crisis ranging from low to moderate. The report shows that the household debt-to-disposable income ratio improved to 43.2 per cent, down from 44.7 per cent. William attributed the improvement to income growth and recent tax relief measures, which helped disposable income outpace the accumulation of new debt. However, she cautioned that household purchasing power remains under pressure from imported inflation in energy and food. William also shared the results of stress testing, which simulates adverse economic scenarios to assess how banks would perform during a crisis. "Our capital adequacy ratio still comes in at 14.7 per cent in the adverse scenario, which is still above the prudential requirement. This gives us comfort that, from a solvency perspective, the banks are quite well buffered to absorb potential losses," she said. On the non-bank financial institutions sector, William said assets grew by 16.5 per cent to N$553 billion. She noted that retirement funds maintained a funding level of 101 per cent, indicating that they have adequate assets to meet liabilities to members. The presentation concluded that while global geopolitical tensions remain the primary threat to the domestic outlook, Namibia's financial system remains sound, stable, and robust.