Former mines minister urges banks to shed risk-averse mindset
Former mines minister Tom Alweendo says the banking industry must play its part to bring about development, and drive away from its risk aversive behaviour.
Alweendo made the remarks at a recent Stanlib/Liberty Life Namibia engagement and said it was incumbent on the banking sector to help grow the economy.
“Many banks often take an excessively risk-based approach. They rather focus on security and collateral rather than interpretation. They will favour established inter-process over innovation, mutual use,” Alweendo said.
According to Alweendo, banks should contribute to economic growth.
“We need financial institutions that are willing to be involved. The ones that balance risk with opportunity. The ones that can innovate in financial products to reach understaffed businesses, and that also take a proactive role in value development.”
It was also up to policy makers to ensure that a conducive environment was conducive towards creating an enabling environment to thrive.
‘I also admit that governments and policy makers like ours also have a role to play in this. We need to create environments where financial institutions feel empowered to take calculated risks. Whether through guarantees or incentives or some reform of our regulatory frameworks that promote responsibility without stifling ambition,” Alweendo said.
“The reality is really simple. No economy can grow without investment, and without financial institutions that are willing to step forward. It is time we shift the mindset from reservation to opportunity formation. Because when capital flows freely to those who need it most, we unlock the full potential of individuals, business and also economies,” he added.
Alweendo called on the banking sector to do its part to aid the economy.
“I would therefore like to challenge our financial institutions to be more, and also to be more and to see themselves not just as protectors of capital, but also as catalysts for progress. The future of economic development depends on capital. Now, let me say a few words on the energy sector, specifically I think I want to focus on the oil and gas sector.”
Alweendo made the remarks at a recent Stanlib/Liberty Life Namibia engagement and said it was incumbent on the banking sector to help grow the economy.
“Many banks often take an excessively risk-based approach. They rather focus on security and collateral rather than interpretation. They will favour established inter-process over innovation, mutual use,” Alweendo said.
According to Alweendo, banks should contribute to economic growth.
“We need financial institutions that are willing to be involved. The ones that balance risk with opportunity. The ones that can innovate in financial products to reach understaffed businesses, and that also take a proactive role in value development.”
It was also up to policy makers to ensure that a conducive environment was conducive towards creating an enabling environment to thrive.
‘I also admit that governments and policy makers like ours also have a role to play in this. We need to create environments where financial institutions feel empowered to take calculated risks. Whether through guarantees or incentives or some reform of our regulatory frameworks that promote responsibility without stifling ambition,” Alweendo said.
“The reality is really simple. No economy can grow without investment, and without financial institutions that are willing to step forward. It is time we shift the mindset from reservation to opportunity formation. Because when capital flows freely to those who need it most, we unlock the full potential of individuals, business and also economies,” he added.
Alweendo called on the banking sector to do its part to aid the economy.
“I would therefore like to challenge our financial institutions to be more, and also to be more and to see themselves not just as protectors of capital, but also as catalysts for progress. The future of economic development depends on capital. Now, let me say a few words on the energy sector, specifically I think I want to focus on the oil and gas sector.”
