Commercial banks operating in Angola have until the end of the year to increase their share capital from 2.5 billion to 7.5 billion kwanzas (US$35 million), in line with Notice 2/2018 from the National Bank of Angola, on “Adequacy of Minimum Capital Stock and Regulatory Own Funds of Financial Banking Institutions.”
The notice said that banks that have a capital lower than the new required minimum can increase it by through “issuance and subscription of new shares,” or by “incorporation into the share capital of legal reserves, free reserves or results for the financial year, provided they have been audited.”
The Angolan central bank said that if banks fail to meet these minimum requirements, “they should consider alternatives, including mergers.”
The National Bank of Angola also suggested that banks with no capacity to adjust their share capital by 31 December 2018, should sell their business to one or more authorised banking institutions.
The BNA notice also imposes a deadline of up to 120 days for banks to submit “a detailed plan of action describing the measures they intend to apply to achieve expected compliance,” with the document. (macauhub)