By: Nghiinomenwa-vali Erastus
Banks must adapt and meet the evolving needs of all their stakeholders in the economy, said Bank Windhoek’s Managing Director, Baronice Hans.
She made this statement when she handed over the Chairpersonship of the Bankers Association of Namibia (BAN) in Windhoek last week.
Hans explained that the banking sector is vital as it is entrusted with the efficient functioning of economic activity, stating that despite societal expectations and innovation challenges there are still growth opportunities for the banks to evolve and adapt.
She also took the opportunity to say that the banking industry is acutely aware of the magnitude of its role in uplifting Namibian society and communities.
“We face both tremendous opportunities and formidable challenges stemming from societal pressures, the transition to digital banking, and the risks associated with technological advancements, among other factors,” she said.
By the end of May 2023, the commercial banks have advanced N$118,3 billion to the private companies and individuals.
Individuals have borrowed a chunk of the total extended amounting to N$65,8 billion.
Hans has also acknowledged that the banking industry has been facing scrutiny and negative sentiment, some of them relating to property repossessing and being conservative in lending.
However, according to her, they have remained committed to the banks’ numerous roles in the economy.
These roles, she said, are financial intermediation, credit creation, the provision of secure and efficient payment systems, capital formation, risk management, and the transmission of monetary policy.
“By fulfilling these functions, banks contribute significantly to the allocation of capital, the facilitation of economic transactions, the management of risks, and the overall stability and growth of the economy,” Hans said.
During Bank Windhoek’s tenure of the BAN Chairpersonship, Hans said it advocated the importance of open communication and dialogue with all stakeholders and addressed the ongoing challenges in clarifying the role of the banking sector.
She further said during her tenure during the 2022/23 period, the BAN implemented the Code of Banking Practice to ensure fair treatment of customers.
At the same time, the Bankers have also increased the publication of various articles as part of their consumer education drive, focusing on the requirements for granting credit by banks.
She added that the banks have also actively pursued corporate citizenship initiatives, supported charitable causes, promoted economic development, and addressed societal challenges.
“Notable efforts by the industry include supporting small businesses through initiatives like the Small Medium Enterprises Recovery Loan,” she expanded.
“We are dedicated to our corporate social responsibility programmes,” she said.
Individual banks allocate 1% of their annual profit after tax to social investment programmes. This is in addition to the Corporate Social Responsibility initiatives driven through BAN.
The responsibility of Chairing the BAN rotates annually among the Managing Directors and/or Chief Executive Officers of commercial banks in the country.
Hans handed over the responsibility to First National Bank’s Chief Executive Officer, Erwin Tjipuka. Email: erastus@thevillager.com.na
