Banking sector urged to cater to small business
Play a more proactive role, president implores
The banking sector has been encouraged to cater towards small and medium enterprises.
President Nangolo Mbumba has urged the banking sector to create products targeted at small and medium enterprises (SMEs) during a meeting the Bankers Association of Namibia late last week. Addressing the leaders of various commercial banks, Mbumba said banking went beyond providing financial intermediation services.
“As government, we would like to see the local banks playing a more proactive role in terms of development and particularly when it comes to funding to SMEs through ways and means that can substantially lessen the collateral requirements and involve more equity type of instruments,” he said.
“Similarly, the government would like to see banks become development partners whose sole motive should not be an exclusive focus on profit, but also social inclusion and mainstreaming of the unbanked segments of our society through innovative banking instruments such as mobile banking."
Mbumba also lauded the regulatory role played by the Bank of Namibia (BoN) and said it was proactively carrying out its role.
“The mandates and services of banks go beyond traditional roles like lending and deposits. Banks actively foster entrepreneurship, drive innovation and promote technological advancement, making significant impacts on both national and global economies. Therefore, it is crucial that the banking sector remains well-regulated, a function done very well by the BoN,” he said.
The head of state further urged banking bosses to align the strategies of their institutions with the socioeconomic realities of Namibia.
“We must continually ensure that our banking strategies align with the socioeconomic context in which we are operating. Banks, just as any other investment or company, should ensure that they contribute to the overall well-being of the society in which they operate by treating their workers well and providing them with all the required benefits of social security such as housing, pension, medical aid and competitive salaries. And finally, contribute towards social corporate responsibility,” he said.