#JustIn: Home loan intervention needed, says BoN
The Macroprudential Oversight Committee (MOC) of the Bank of Namibia (BoN) has concluded that there is a need to enable a macroprudential policy intervention on the existing loan-to-value (LTV) regulation to support the domestic economy.
Florette Nakusera, director of financial stability and macroprudential oversight at the BoN, today said this in a voice clip.
An LTV require some home loan applicants to pay a percentage of the purchasing price or market value of the property as a deposit. The commercial bank providing the loan to the prospective buyer will finance the remaining percentage of the home loan.
Nakusera’s voice clip was released as part of the BoN’s statement on the MOC’s meeting this week.
The MOC of the BoN this week convened its first meeting of the year to assess risks and vulnerabilities faced by the domestic financial system. In its assessment, performance in the last quarter of 2022 was compared with that of the first quarter of 2023.
BoN governor Johannes !Gawaxab issued a statement, saying asset quality of the banking sector, as measured by the non-performing loans (NPLs) ratio, deteriorated slightly, but remained below the supervisory intervention trigger point of 6%.
“Going forward, the burden of debt servicing for households and businesses, along with slower growth expectations and tight monetary policy, may apply additional pressure on asset quality,” !Gawaxab said.
Florette Nakusera, director of financial stability and macroprudential oversight at the BoN, today said this in a voice clip.
An LTV require some home loan applicants to pay a percentage of the purchasing price or market value of the property as a deposit. The commercial bank providing the loan to the prospective buyer will finance the remaining percentage of the home loan.
Nakusera’s voice clip was released as part of the BoN’s statement on the MOC’s meeting this week.
The MOC of the BoN this week convened its first meeting of the year to assess risks and vulnerabilities faced by the domestic financial system. In its assessment, performance in the last quarter of 2022 was compared with that of the first quarter of 2023.
BoN governor Johannes !Gawaxab issued a statement, saying asset quality of the banking sector, as measured by the non-performing loans (NPLs) ratio, deteriorated slightly, but remained below the supervisory intervention trigger point of 6%.
“Going forward, the burden of debt servicing for households and businesses, along with slower growth expectations and tight monetary policy, may apply additional pressure on asset quality,” !Gawaxab said.
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