AN OVERVIEW AND ANALYSIS OF THE NAMIBIAN FINANCIAL SYSTEM FOCUSING ON THE BANKING SECTOR

Abstract

This article examines the evolution of Namibia’s financial system post-independence in 1990. The structure and composition of the financial system is discussed along its contributions to employment creation and economic growth. The ownership structure of the banking sector and its overall performance is also outlined. The finding reveals that there has been a significant increase in the influence of non-bank financial intermediaries, meanwhile the dominance of the financial sector continues to shrink with mounting credit risk pressures. The financial sector’s contribution to employment creation has been quite minimum and is likely to continue in the foreseeable future as developments in the artificial intelligence world accelerate. The practical policy interventions emanating from this assessment necessitate a serious consideration.

Keywords

• financial system
• credit risk
• banking sector
• namibia