LEGAL FRAMEWORK FOR DEVELOPMENT BANKING IN NAMIBIA at IOB
What is LEGAL FRAMEWORK?
The rules, rights and obligations of companies, governments, and citizens are set forth in a system of legal documents called a legal framework. • Documents in the legal framework include a country’s constitution, legislation, policy, regulations and contracts.
The Development Bank of Namibia Limited (DBN) provides finance for viable enterprises and sustainable initiatives that contribute to the development of Namibia. DBN’s Loan Facilities assist businesses to start or expand their existing business operations.
Frequently Asked Questions
Who are the financial system regulators in Namibia?
The Namibia Financial Institutions Supervisory Authority (NAMFISA) is an independent institution established by virtue of Act No. 3 of 2001 to regulate and supervise financial institutions in the financial services industry in the public interest, and fully funded by levies imposed on this industry.
What does Bank of Namibia do?
As Namibia’s central bank, we are entrusted with various functions such as: supporting economic growth and development, act as fiscal advisor and banker to Government, promote price stability, manage reserves and currency, ensure sound financial system and conduct economic research.
Is DBN fulfilling its mandate?
Okpanachi, who spoke at a virtual second annual lecture series of the DBN, themed, “Resilient Innovation: MSMEs’ adaptability in Uncertain Times,” said the DBN had fulfilled its mandate by championing the provision of funds for the SMEs.
What are the roles of development bank?
DBN will play a focal and catalytic role in providing funding and risk-sharing facilities. It will also incentivise financial institutions, predominantly Deposit-Money and Microfinance Banks, by augmenting their capacity and by providing them with funding facilities designed to meet the needs of these smaller clients.
What is the work of development bank?
Development banks are specialized financial institutions. They provide medium and long-term finance to the industrial and agricultural sector. They do term lending, investment in securities and other activities. They even promote saving and investment habit in the public.
Is money lending business profitable?
While the role of moneylenders has reduced, they still continue to play a prominent role in the system. They continue to charge high rates of interest, which in turn leads to super normal profits. Money lending, hence has always been and will be one of the most lucrative business.
What is money laundering in Namibia?
Money Laundering is the process whereby criminals convert the proceeds of crime (such as money, property, shares, etc.)into assets that appear to have a legitimate origin.
How is a development bank different from a commercial bank?
Commercial Bank is the bank organized to perform public utility banking services, such as accepting deposits, lending money, etc. On the other hand, development bank refers to a multi-purpose financial undertaking set up to provide financial aid to the industrial and agricultural sector, to encourage development.
Are development banks scheduled banks?
The structure of the banking system of India can be broadly divided into scheduled banks, non-scheduled banks and development banks. Banks that are included in the second schedule of the Reserve Bank of India Act, 1934 are considered to be scheduled banks.
What are the difference between commercial and central bank?
Central bank can be called the apex bank, which is responsible for formulating the monetary policy of an economy. Commercial banks, on the other hand, are those banks that help in the flow of money in an economy by providing deposit and credit facilities.
How many types of development banks are there?
At present, at the all-India level, there are five industrial development banks, one agricultural development bank and one export-import bank.
What is a private development bank?
Private development banks are organized as corporations, some with several hundred million dollars of initial capital, some with far less. The capitalization of any particular bank necessarily reflects a judgment concerning the amount that it appears feasible to raise from available sources.
How do development banks make money?
While commercial banks seek to make profits on loans and other financial services, the goal of MDBs is to issue grants and low-cost loans to improve the economic conditions of impoverished or developing nations. MDBs now operate throughout the world and control trillions of dollars in assets.
Why financial institutions are called development banks?
Financial institutions are also known as development banks because these institutions provide long and medium-term loans for the development and growth of industry.
What is different between bank and banking?
A bank is an institution and banking is the activities of that institution. For example- collecting deposit; discounting of bills, draft, order, money transfer, giving aid to business etc. The Oxford Dictionary: “Banking is the business of a banker and the keeping or management of a Bank.”