Namfisa moves forward
The Namibia Financial Institutions Supervisory Authority (NAMFISA) launched their annual report last year.
NDAMA NAKASHOLE
The NAMFISA 2017 Annual report reflects that the authority has made significant strides in its regulatory, supervisory, and institutional reforms.
“The report is an indication of NAMFISA’s high standard of corporate governance in complying with the NAMCODE and King report, hence the various achievements’ including the best Annual report in Namibia for the past 7 years,” the regulator’s CEO Kenneth Matomola said yesterday when he launched the report in Windhoek.
Overall, the financial institutions over which the authority exercises supervision are healthy and do not pose systemic risk to the country’s financial system.
NAMFISA says it remains committed in working towards its set objectives to effectively transform the financial sector for the ultimate benefit of all Namibians.
Financials
Total income of N$149.4 million was 35% (N$80.4 million) lower than the budget of N$229.8 million for the period.
“The variance in total income is due to levy income falling below budget, as NAMFISA's new levy structure only became effective on 1 November 2017, as per the Government Notice No. 265 of 2017,” Matomola explained.
He said that the authority implemented cost savings measures aimed at ensuring financially sustainability during the reporting period.
Total expenditure of N$201.7 million was incurred by the regulator which represents a saving of N$28.1 million compared to the budget of N$229.8 million. This positive variance is the result of cost saving measures that was put in place, he said.
Regulation
During 2017/18, NAMFISA received a total of 990 complaints which is an increase of 26.3% from the previous year. A total of N$59.9 million was reimbursed to complainants following NAMFISA’s intervention.
The nature of complaints received range from non-cancellation of contracts , non-payment of pension benefits, non-payment of pension contributions and repudiation of insurance claims.
Industry
Overall, the non-banking financial industry (NBFI)’s industry remained financially stable and sound as reflected in data collected by NAMFISA. Further, the industry continued to grow its assets by 13.2% from N$243.7 to N$287,5 despite recessionary economic conditions.
Pension funds sector continued to grow its assets as it remained solvent with a sound funding levels. Long-term insurance remained solvent as it continued to hold sufficient excess assets to cushion adverse shocks. Short-term insurance remained highly liquid and profitable with sufficient excess reserves
Medical aid funds sector remained highly liquid and held excess reserves above prudential limits as buffer to mitigate against potential shocks
As for the investment management, Matomola said despite recessionary conditions, conduit sectors prudently invested NBFIs asset base as they derived positive returns from their investments which in turn grew the NBFIs asset base.
During the current year, the regulator said it will go on with the promulgation and implementation of the pending bills such as FIM,NAMFISA,FSA and Microlending.
Effective implementation of Risk Based Supervision (RBS), consumer protection , improved stakeholder engagement and ooperational efficiency are other focus areas of the regulator in the current year.
The NAMFISA 2017 Annual report reflects that the authority has made significant strides in its regulatory, supervisory, and institutional reforms.
“The report is an indication of NAMFISA’s high standard of corporate governance in complying with the NAMCODE and King report, hence the various achievements’ including the best Annual report in Namibia for the past 7 years,” the regulator’s CEO Kenneth Matomola said yesterday when he launched the report in Windhoek.
Overall, the financial institutions over which the authority exercises supervision are healthy and do not pose systemic risk to the country’s financial system.
NAMFISA says it remains committed in working towards its set objectives to effectively transform the financial sector for the ultimate benefit of all Namibians.
Financials
Total income of N$149.4 million was 35% (N$80.4 million) lower than the budget of N$229.8 million for the period.
“The variance in total income is due to levy income falling below budget, as NAMFISA's new levy structure only became effective on 1 November 2017, as per the Government Notice No. 265 of 2017,” Matomola explained.
He said that the authority implemented cost savings measures aimed at ensuring financially sustainability during the reporting period.
Total expenditure of N$201.7 million was incurred by the regulator which represents a saving of N$28.1 million compared to the budget of N$229.8 million. This positive variance is the result of cost saving measures that was put in place, he said.
Regulation
During 2017/18, NAMFISA received a total of 990 complaints which is an increase of 26.3% from the previous year. A total of N$59.9 million was reimbursed to complainants following NAMFISA’s intervention.
The nature of complaints received range from non-cancellation of contracts , non-payment of pension benefits, non-payment of pension contributions and repudiation of insurance claims.
Industry
Overall, the non-banking financial industry (NBFI)’s industry remained financially stable and sound as reflected in data collected by NAMFISA. Further, the industry continued to grow its assets by 13.2% from N$243.7 to N$287,5 despite recessionary economic conditions.
Pension funds sector continued to grow its assets as it remained solvent with a sound funding levels. Long-term insurance remained solvent as it continued to hold sufficient excess assets to cushion adverse shocks. Short-term insurance remained highly liquid and profitable with sufficient excess reserves
Medical aid funds sector remained highly liquid and held excess reserves above prudential limits as buffer to mitigate against potential shocks
As for the investment management, Matomola said despite recessionary conditions, conduit sectors prudently invested NBFIs asset base as they derived positive returns from their investments which in turn grew the NBFIs asset base.
During the current year, the regulator said it will go on with the promulgation and implementation of the pending bills such as FIM,NAMFISA,FSA and Microlending.
Effective implementation of Risk Based Supervision (RBS), consumer protection , improved stakeholder engagement and ooperational efficiency are other focus areas of the regulator in the current year.
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