CHAMWE KAIRA
Bankers Association of Namibia (BAN) has said the issue of interest rates and perceived high bank charges that props up from time to time was just one of the many issues that was discussed with President Nangolo Mbumba last week.
“The meeting was a mere catch up with him on what we have been doing in our space to assist new industries, create employment and assist with economic development. This is an old issue coming from last year that he touched on, with many other constructive issues. So, it’s not a new issue that cropped up now. BAN and its members is committed to treating customers fairly and being very transparent in the products and services we offer, and our fees,” BAN CEO Brian Katjaerua told Observer Money.
He explained that that issue of fees constituted probably one percent of what BAN discussed with the President Mbumba. The meeting discussed much broader issues in the interest of Namibia’s economic development, with emphasis on new industries, the core theme being the role banks can play now and in future, Katjaerua added.
“For us, fees and charges is an old story. It is the same issues raised by the members of parliament late last year. And yes we also focused on treating customers fairly and educating our customers vis-a-vis their financial obligations, rights, duties and what they may expect from banks.”
During the meeting with the banking industry, Mbumba said the government would like to see banks become development partners, whose sole motive should not be an exclusive focus on profit.
Commenting on what will be the banking industry’s contribution to the Bank of Namibia’s plans to conduct a comprehensive study on user fees and charges, he said BAN will provide information where it is required to. “We have been cooperating with all stakeholders.”
On the issue of the IMF and rating agencies raising concerns about lending being heavily weighted towards mortgage loans, Katjaerua mortgage loans will always take the lead in terms of lending because these are chunky deals.
“One house is for example a million dollars, whereas a personal loan could be N$100 000. Therefore, you will see larger exposures in the housing market.”
Last year, Kazembire Zemburuka, the Director of Strategic Communications and International Relations at the Bank of Namibia said the bank acknowledges the widespread concern regarding banking fees and charges.
He said prioritising the existence of robust laws to enable regulatory interventions for overseeing fees and charges has been a focal point for both the Bank and the Ministry of Finance and Public Enterprises.
He added that the bank and the ministry advocated for legislation authorising the Minister of Finance and Public Enterprises to issue regulations governing fees and charges imposed by banking institutions on their customers.
Zemburuka said the Banking Institutions Act no. 13 of 2023 and the Payment System Management Act no. 14 of 2023, specifically addressed the issue of fees and charges, ensuring that decisions are made in the best interest of all Namibians.
