Hertta-Maria Amutenja
The Bank of Namibia yesterday launched an Automated Regulatory Reporting System, which the central bank says will assist in maintaining financial stability and mitigate risks. The system, according to BoN will further enhance data collection and analytics capabilities. It will be available to regulated and supervised entities licensed by the Bank to conduct banking, currency exchange, and payment service provision activities.
The system is a first for Namibia and is effective 1 February 2023.
The Governor of the bank, Johannes !Gawaxab said the system engenders confidence in and contributes significantly to the stability and soundness of the domestic financial system.
“As we have seen globally and locally, banks can fail as businesses. Thus, a strong and robust supervision system, supported by adequate regulatory technology, is critical to their survival. Although not all banks can be saved from failure, with this new system in place, they can better be recovered through early interventions to prevent the contagion effect, thereby protecting the stability of our financial system,” !Gawaxab said.
According to the bank’s Director of Strategic Communications and International Relation, Kazembire Zemburuka , the system provides an effective, reliable, and scalable way to detect and address any irregularities or issues near real-time.
“A significant reduction in human error and time consumption will occur as the automated compliance monitoring, and supervision allows continuous monitoring, identification, and reporting of issues that keep the regulated institutions fully compliant according to regulatory expectations.The capability is thus instrumental in the effective supervision and safeguarding of any banking institution’s stability in order to mitigate risks to the soundness and stability of both the institution and the financial system. Furthermore, the system offers efficient, transparent regulatory processes and enables enhanced data collection and analytics capabilities,” said Zemburuka.
He added that the automation project is a realisation of an undertaking to transform and modernise Namibia’s financial sector further, as envisaged in the Bank’s Strategic Plan of 2022-2024.
“Through digital transformation in particular, the Bank shall continue to deliverBresponsive and innovative solutions to the industry and transform regulatory processes to provide robust, agile, and flexible supervisory oversight to an ever evolving and digitized financial sector. Ultimately, a stable and inclusive financial system is a prerequisite to economic recovery and sustained economic development going forward,” he said.
