Africa-Press – Namibia. ANYONE, including the previously disadvantaged, who wants to own shares in banks in Namibia, is encouraged to do so, since there are structures in place to do so.
ANYONE, including the previously disadvantaged, who wants to own shares in banks in Namibia, is encouraged to do so, since there are structures in place to do so.
This was said by the chief executive officer of the Bankers Association of Namibia (BAN), Brian Katjaerua, on Desert Radio yesterday. He said most banks in Namibia are listed on the Namibian Stock Exchange, and people can buy into the banks through the stock exchange.
“These shares are quite accessible as they are priced within reach of everyone who wants them, and they are there for the majority of the people to participate,” he said.
Katjaerua said while historically, ownership of shares in banks have been for a few only, there has been a shift aligning with president Hage Geingob’s mantra that no one should be left behind.
“Standard Bank, Letshego, and FNB have been listed on the stock exchange, while Bank Windhoek is a local institution, so people can choose in which bank to own shares,” he said.
In addition, he said Namibians can benefit from the bank ownership structure in that organisations like the Government Institutions Pension Fund and others own shares in banks, and the benefits from these shares trickle down to members.
Katjaerua said while BAN is an organisation primarily focusing on policy issues of a non-competitive nature affecting the banking industry, the Bank of Namibia, as the regulator of the Banking Act, checks on how banks conduct business for sustainable socio-economic development in the country.
“We do not want banks that fall over, because that will have dire consequences for the economy,” he said.
He said BAN is a medium for communication among banks in Namibia, and although the association provides a platform for members to deal with non-competitive issues, the banks still comply with the dictates of the Competition Act that prohibits any anti-competitive behaviour.
Asked to comment on banks making a killing through charging clients exorbitant fees, he said it is an existing perception. He said the issue of bank charges are up to individual banks.
“Banks are free to set their own charges, but there are various products in the banking sector to suit every individual. There are online services through which customers can transact cheaply.
“Clients can also seek advice from their banks on how to reduce their bank charges,” he said.
Katjaerua, however, said what must be understood from a banking investment perspective is that when a service is offered, it requires some form of payment.
“Services cost money to offer, and banks also have shareholders who invested their money in these entities, and they expect a profit at the end of the day,” he said.
“We believe there is fairness in what people are charged. To say that banks are making mega profits at the expense of the transacting public is not the correct way of looking at the issue, but what we should understand is the role of banks in the Namibian economy: what it is they are doing, who sits behind the banks, and how many people they employ,” he said.
Katjaerua said BAN will soon launch an educational campaign to teach members of the public how to transact with banks and to understand which behaviours would incur them huge bank charges.
He said while about 30% of Namibians are unbanked, BAN members were doing their best to reach every corner of the country, but there are structural issues which banks alone cannot address.
“For example, if you do not have enabling aspects like electricity in some parts of the country, you cannot set up any banking infrastructure there. But what banks are doing is going more digital.
“A person in Windhoek can send anyone money in rural areas, and they can access it at an ATM or partnering supermarket.
“Finally, in each bank you will find what is called basic bank accounts, which are designed for low-income earners, and these accounts have very low transactional charges,” he said.
Email: [email protected] This was said by the chief executive officer of the Bankers Association of Namibia (BAN), Brian Katjaerua, on Desert Radio yesterday. He said most banks in Namibia are listed on the Namibian Stock Exchange, and people can buy into the banks through the stock exchange.
“These shares are quite accessible as they are priced within reach of everyone who wants them, and they are there for the majority of the people to participate,” he said.
Katjaerua said while historically, ownership of shares in banks have been for a few only, there has been a shift aligning with president Hage Geingob’s mantra that no one should be left behind.
“Standard Bank, Letshego, and FNB have been listed on the stock exchange, while Bank Windhoek is a local institution, so people can choose in which bank to own shares,” he said.
In addition, he said Namibians can benefit from the bank ownership structure in that organisations like the Government Institutions Pension Fund and others own shares in banks, and the benefits from these shares trickle down to members.
Katjaerua said while BAN is an organisation primarily focusing on policy issues of a non-competitive nature affecting the banking industry, the Bank of Namibia, as the regulator of the Banking Act, checks on how banks conduct business for sustainable socio-economic development in the country.
“We do not want banks that fall over, because that will have dire consequences for the economy,” he said.
He said BAN is a medium for communication among banks in Namibia, and although the association provides a platform for members to deal with non-competitive issues, the banks still comply with the dictates of the Competition Act that prohibits any anti-competitive behaviour.
Asked to comment on banks making a killing through charging clients exorbitant fees, he said it is an existing perception. He said the issue of bank charges are up to individual banks.
“Banks are free to set their own charges, but there are various products in the banking sector to suit every individual. There are online services through which customers can transact cheaply.
“Clients can also seek advice from their banks on how to reduce their bank charges,” he said.
Katjaerua, however, said what must be understood from a banking investment perspective is that when a service is offered, it requires some form of payment.
“Services cost money to offer, and banks also have shareholders who invested their money in these entities, and they expect a profit at the end of the day,” he said.
“We believe there is fairness in what people are charged. To say that banks are making mega profits at the expense of the transacting public is not the correct way of looking at the issue, but what we should understand is the role of banks in the Namibian economy: what it is they are doing, who sits behind the banks, and how many people they employ,” he said.
Katjaerua said BAN will soon launch an educational campaign to teach members of the public how to transact with banks and to understand which behaviours would incur them huge bank charges.
He said while about 30% of Namibians are unbanked, BAN members were doing their best to reach every corner of the country, but there are structural issues which banks alone cannot address.
“For example, if you do not have enabling aspects like electricity in some parts of the country, you cannot set up any banking infrastructure there. But what banks are doing is going more digital.
“A person in Windhoek can send anyone money in rural areas, and they can access it at an ATM or partnering supermarket.
“Finally, in each bank you will find what is called basic bank accounts, which are designed for low-income earners, and these accounts have very low transactional charges,” he said.
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