Namibia: Commercial Banks Liquidity Tighten As Deposits Decline

The banking industry has recorded the highest level in its loan-to-deposit ratio (LDR) in recent years, as more people borrow and dig into savings.

According to the latest sector reports, the LDR, which is a key metric used to measure a bank’s liquidity, jumped from 76.1% in 2024 to 87.5% by the end of 2025.

However, it remains below the 95% trigger threshold which serves as a red flag for potential liquidity crises.

The higher LDR indicates an increased reliance on deposits to fund lending…