Banks contribute to economic growth, says Hans

Banks must adapt to meet the evolving needs of all their stakeholders, says Bank Windhoek managing director Baronice Hans.

“As a vital sector entrusted with the efficient functioning of economic activity, we face both tremendous opportunities and formidable challenges stemming from societal pressures, the transition to digital banking and the risks associated with technological advancements, among other factors,” she said in a statement issued by the bank.

Hans, who handed the revolving chairpersonship of the Bankers Association of Namibia (BAN) on Thursday last week to FNB chief executive officer Erwin Tjipuka, said throughout her BAN tenure, she remained committed to the banks’ numerous roles in the economy.

These roles included financial intermediation, credit creation, the provision of secure and efficient payment systems, capital formation, risk management and the transmission of monetary policy.

“By fulfilling these functions, banks contribute significantly to the allocation of capital, the facilitation of economic transactions, the management of risks, and the overall stability and growth of the economy,” she said.

Hans said the banking industry is aware of the magnitude of its role in uplifting the Namibian society and communities, and that the banks have actively pursued corporate citizenship initiatives, supported charitable causes, promoted economic development, and addressed societal challenges.

“Notable efforts by the industry include supporting small businesses through initiatives like the Small Medium Enterprises Recovery Loan. Additionally, we are dedicated to our corporate social responsibility programmes,” she said.

“Individual banks allocate 1% of their annual profit after tax to social investment programmes. This is in addition to the corporate social responsibility initiatives we drive through the Bankers Association of Namibia to amplify our impact. Furthermore, we prioritise financial education and drive environmental sustainability.”

Hans highlighted key milestones BAN achieved during the 2022/23 period, including the implementation of the BAN code of banking practice to ensure fair treatment of customers and the publication of various articles under its consumer education drive, focusing on the requirements for granting credit by banks.