This could impose losses on banks and mortgage-credit institutes. Nevertheless, our overall assessment is that the development in homeowners' exposure to rising interest rates does not threaten the functioning of the financial system – or financial stability. To put it bluntly, the failure of a number of households to meet their obligations to their credit institutions is not necessarily a financial stability problem.
Michael Mambo Mukete: Role of the Bank of Namibia in consumer protection issues Speech by Mr Michael Mambo Mukete, Assistant Governor of the Bank of Namibia, at the launch of Namibia Consumer Trust, Windhoek, 15 March 2011.