Namibia's domestic financial system remains stable, robust, and resilient to withstand any high risks and vulnerabilities emanating from a number of global and domestic economic factors.

The Bank of Namibia said at this stage, there is no need for macro-prudential policy intervention as both the banking and non-banking industries remained liquid, profitable, and well-capitalized.

The findings emanate from the central bank's Macroprudential Oversight Committee meeting that was aimed at assessing the vulnerabilities in the country's financial system.

Following a comprehensive analysis, the Committee described the critical payment infrastructure sector as operating efficiently. 

The reserve bank warns of possible inflationary pressures emanating from geo-political tensions which require close monitoring, as they could undermine the economic recovery and negatively impact the health of the financial system. 

During the course of this year, the banking and non-banking industries continued to perform satisfactorily and remained profitable for the most part of 2022, the bank states.

It further revised its growth projections for 2022 upwards from 3,2% to 3,9% during the November projections. 

The anticipated growth in 2022 is therefore expected to be broad-based, although some sectors such as construction and public administration are expected to remain weak.

Overall, the International Monetary Fund (IMF) has revised global economic growth projections downwards, for a third time this year, with an expected growth to slow from 6,0% in 2021, to 3,2% and 2,7% in 2022 and 2023, respectively.

In terms of transactions, the payment system is said to have been operating effectively during the year under review, with financial market infrastructures such as the Namibia Inter-Bank Settlement System and Nam-clear, operating optimally with no major interruptions. 

The Bank of Namibia in collaboration with NAMFISA said they will continue to monitor any potential risks and employ the necessary interventions.