The Namibian banking institutions have solid financial buffers to withstand risks from internal and external shocks.

The Bank of Namibia gave this assurance following financial turbulences in banking institutions in the United States and Europe.

The latest international financial crisis involves Swiss Bank Credit Suisse, which was rescued by a sister Swiss company.

The Bank of Namibia, in a statement issued by its Communications Director Kazembire Zemburuka, says the robust regulations and sound oversight of the banking institutions in the country ensure that they are insulated against the current international financial instabilities.

Zemburuka says local banks only had 34% exposure to government bonds at the end of last year, while the failed US banks had 55% in long-term fixed-income investments, which contributed to the crisis.

He further says local banks also held a liquidity buffer of N$11.1 billion in December last year, N$10 billion above the statutory minimum requirement, which could cushion them against any eventuality.

"Despite the ongoing global developments, the Namibian banking system remains liquid and well-capitalized. In this regard, the total risk-weighted assets stood at 17% at the end of  December 2022. Similarly, the liquidity position of the banking sector stood at 17.8%, N$10.4 billion above the statutory minimum requirement. Maintaining adequate liquidity is a bank's lifeline, ensuring it can honor its obligations as they become due."

The Bank of Namibia thus assured the public that what is happening in the international markets is unlikely to reach Namibia, thanks to the robust rules and regulations governing local banks.