Namibia Tightens Grip on Financial Reporting Requirements for Domestic Banks

The Bank of Namibia has issued a new directive aimed at enhancing transparency and accountability by strengthening financial reporting requirements for domestic banks.

Accounting Period

According to the directive, The Bank of Namibia’s accounting period runs from January 1st to December 31st each year.

Financial Statement Requirements

As per the Bank of Namibia Act:

• Financial statements are prepared on a monthly basis for publication in the Government Gazette.
• Annual financial statements are released by March 31st every year.
• Financial statements are prepared in accordance with International Financial Reporting Standards (IFRSs) and as required by the Bank of Namibia Act.

Key Component: Statement of Assets and Liabilities

A key component of these financial reports is the Statement of Assets and Liabilities, which provides a comprehensive overview of the bank’s financial position at any given time.

Benefits of New Directive

The new directive is expected to:

• Improve the accuracy and reliability of financial reporting in the country
• Enhance investor confidence
• Promote healthy competition among domestic banks

Government Commitment

This new directive underscores the government’s commitment to implementing best practices in financial governance and regulation, demonstrating its dedication to maintaining a transparent and accountable financial sector.