Windhoek: The Bank of Namibia (BoN) announced that, despite increased global macro-financial uncertainties, the domestic financial system remains sound and stable, continuing to operate without disruptions. Deputy Governor of BoN, Ebson Uanguta, in a statement issued on Saturday, said that the Macroprudential Oversight Committee (MOC) of the Bank held its second meeting of the year to evaluate potential risks and vulnerabilities in the financial system.

According to Namibia Press Agency, the MOC conducted a comprehensive assessment of both global and domestic developments during its second meeting of the year held on 20 November 2025. Uanguta noted that the global financial system has demonstrated resilience since the last meeting in July 2025, although global economic and trade policy uncertainty remains high.

"The global economy has continued to demonstrate resilience, with global financial market volatility declining since its peak in April 2025," Uanguta stated. He highlighted that financial conditions have broadly eased, supported by accommodative monetary policy stances across major advanced economies, while asset valuations are significantly higher than historical norms, especially in the United States (US).

Uanguta further emphasized that the banking sector remained well-capitalized, profitable, and liquid during the third quarter of 2025. Total assets of the banking sector rose by 3.1 percent to N.dollars 184.7 billion in the third quarter of 2025, primarily driven by growth in net loans and advances within the banking sector, supported by a rise in short-term negotiable securities.

Regarding profitability, Uanguta stated that the return on assets remained unchanged, while the return on equity increased from 19.8 percent to 20.0 percent, mainly due to a rise in net interest and net trading incomes. He also noted that both the banking and non-banking financial sectors are sound and well-capitalized, with adequate levels of capital and liquidity buffers to absorb any potential losses. The payment infrastructure and operations remained efficient, and ongoing regulatory initiatives are expected to continue enhancing resilience and support the stability of the financial sector.