THE liquidity position of the banking industry increased to N$2,1 billion in February from N$948,1 million recorded in January, figures released by the Bank of Namibia showed on Friday.
Bank of Namibia spokesperson, Ndangi Katoma, said the central bank was not aware of any abnormal liquidity challenges experienced by the banking sector.
“Liquidity of banks will be affected by multiple seasonal factors, such as large corporate tax payments at specific intervals. December was not different than previous years,” he said.
The Namibian reported on Friday that commercial banks have struggled to have adequate cash for lending this month.
Katoma said the bank defines the liquidity position of the local banking industry to include the call account (investment account that makes possible withdrawals on short notice) and clearing account ( account used for making payments - where you receive what someone owes you and you pay what you owe other parties) balances held at the Bank of Namibia and with counterparts in South Africa.
“The Bank of Namibia therefore confirms the sound position of the banks with regard to cash flow, liquidity and capital positions,” he said.
Katoma said a mild moderation in the liquidity balances of the commercial banks during December 2015 and January 2016 were due to seasonal factors. He said the liquidity levels have been within normal ranges.
“Data shows that during 2015, the overall liquidity position of the banking industry averaged N$2,8 billion in comparison to N$3,5 billion in 2014 and N$2,8 billion in 2013,” he said.
Katoma said the liquidity position in January was not the lowest liquidity levels on record, as much lower balances were observed in previous years.
“The bank is not concerned about the liquidity levels as the banking sector remains adequately capitalised and continues to meet daily liquid asset requirements,” he said.