On Friday 15 May 2015, an interesting article/letter titled “BoN must investigate commercial banks” was published in your newspaper. While the article’s essence relates to the private sector’s corporate social responsibility to assist the country’s housing backlog needs, the anonymous author asked the Bank of Namibia to respond to some issues relevant to the regulatory mandate of the Bank of Namibia.
I take this opportunity therefore to respond to some of the relevant questions raised by the author in this regard. The author’s arguments highlighted various issues, many of which fall outside the Bank’s mandate and should therefore be addressed by concerned stakeholders. Nevertheless, the author raises some questions as listed below that warrant explaining for the benefit of public awareness.
1. Where is the money coming from to build these mega structures and multi-million dollar apartments constructed throughout Windhoek?
There are many players in the financial sector from whom/which funds could be sourced by individuals and corporates that are involved in construction for business, housing structures or apartments. For commercial banks in particular, they make profit through their business activities and can use such profits for any purpose (within the law) they consider appropriate.
2. Do we have a Banking Ombudsman in Namibia?
Currently we do not have a Banking Ombudsman in Namibia but there plans to establish a Financial Sector Adjudicator and the Bill to that effect is in place.
There are however various initiatives taken under the Namibia Financial Sector strategy framework when it comes to current consumer protection and banking practices. These are for instance, a Code of Banking Practice and the Guidelines for Lodging Customer Complaints to the Bank of Namibia, launched in 2013 by the Bankers Association of Namibia and the Bank of Namibia.
This means that aggrieved consumers are free to launch their complaints first of all with their respective commercial banks. If they are not satisfied with the responses or if their concerns are unresolved at that level, they can escalate their complaints to the Bank of Namibia. Both the Code of Banking Practice and the Guidelines for Lodging Consumer Complaints are available on the websites of the Bank of Namibia (www.bon.com.na/publications. The same document is also available on the websites of commercial banks and the Bankers Association of Namibia.
I trust that you find the above valuable to publish and I thank you in advance in this regard.
Ndangi Katoma
Spokesperson, Bank of Namibia