Namibia’s non-banking financial institutions’ (NBFI) sector has remained financially stable and continued to grow its assets, despite challenging economic conditions. The NBFI asset base increased by 5.7% to end at N$341.9 billion by 31 December 2020.
These figures were released last week through the Namibia Financial Institutions Supervisory Authority (Namfisa)’s annual report for 2021 that attributed the increase mainly to an improved performance in the equity markets during the fourth quarter of 2020.
“This in turn relates not only to countries continuing to upscale their implementation of Covid-19 relief fiscal stimulus measures and the approval of Covid-19 vaccines in Europe and the United Kingdom, but also to the election of President Joe Biden in the United States, with their more aggressive stance towards combatting the Covid-19 pandemic and a promised economic stimulus, which boosted the performance of financial markets. Along with unchanged low interest rates worldwide, these events resulted in sustained positive movements in the price of equity instruments,” reads the report.
Namfisa CEO Kenneth Matomola said the authority responded to the pandemic’s impact on the NBFI sector by introducing relief measures in the various subsectors to assist them with providing relief to consumers directly impacted by Covid-19.
As at 31 December 2020, the sector comprised 10 414 different financial institutions and intermediaries.
“It maintained a financially stable position and continued to grow its assets, despite challenging economic conditions. The authority will, therefore, continue to monitor NBFIs to ensure that they remain financially safe and sound. Overall, the domestic financial system remained resilient during the review period,” he noted.
Furthermore, the authority ensured that consumers were protected during the reporting year by enforcing the laws under its regulatory ambit, and delivering ongoing consumer education. Feedback from financial services consumers complaints was welcomed and addressed, allowing Namfisa to resolve 959 (90.6%) of the issues tabled. The CEO noted that Namfisa’s interventions meant that N$2 million could be paid back into consumers’ pockets, at no cost to them.
On overall performance, the NBFI’s total income for the year ending 31 March 2021 amounted to N$223.6 million, with expenditure totalling N$218.6 million. Other comprehensive income amounted to N$6 million, while the total comprehensive surplus for the year amounted to N$11 million.
During the review period, levy income amounted to N$210.4 million, representing a decrease of N$2.6 million or 1.2%, compared with the levy income recorded for the prior financial year.