Browsing by Author "Sheefeni, Johannes P.S."

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    Determinants of non-performing loans in Namibia’s banking sector using composite indices
    (Adonis and Abbey Publishers Ltd, 2025) Undji, Valdemar J; Sheefeni, Johannes P.S.
    This study investigates the determinants of non-performing loans (NPL) in Namibia’s banking sector using six composite indices (macroeconomic, bank-specific, monetary, interest rate, financial and institutional) spanning from 1996Q1 to 2021Q4. The Autoregressive Distributive Lag (ARDL) and pairwise Granger causality modelling approaches are respectively employed and the result shows that over the long-run, both the macroeconomic and interest rate index influence NPL. In the short-run, however, the study reveals that previous levels of NPL, macroeconomic, interest rate and institutional indices affect NPL altogether. In terms of causality, a long-run causal relationship is found between all the variables employed in the model. In the short-run, a unidirectional causal relationship running from the macroeconomic index to NPL and from NPL to the interest rate index as well as from NPL to the institutional index is registered. The study underscores some policy implications that are worth considering.
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    Money channel of monetary policy transmission in Namibia
    (The Institute for International Economics, 2020) Sheefeni, Johannes P.S.
    There is an argument that being in an exchange rate pegging arrangement limits the scope of using interest rate to control money supply to affect output or inflation but here is a point of contention in the case of Namibia. This is due to the fact that the major concern in an exchange rate pegging arrangement is that it obliges the central bank (BoN) to limit money creation to levels comparable to those of the anchor country (South Africa), to which the Namibia dollar is pegged. This is because the process of money creation is associated with increase in domestic inflation pressures. This study includes four variables: real output; consumer price level; aggregate money supply; and repo rate, in the structural vector error correction (SVECM) model, to analyse the money channel for monetary policy transmission in Namibia. The model estimated utilised quarterly time-series data covering the period 2000:Q1 to 2016:Q4. The results show that money supply contains information on the monetary policy transmission process, but, there are more factors involved in the responses of output to the repo rate shocks than consumer prices alone.