The ratio of non-performing loans granted by Angolan banks has more than doubled in the last three years, from 11% in December 2015 to around 26% in June of this year, the governor of the National Bank of Angola (BNA) said on Thursday.
José de Lima Massano gave a keynote speech at the opening session of the 13th edition of the study “Banking under Analysis 2017,” prepared by Deloitte Angola.
The governor also said that the increasing difficulties of repayment of loans by households and companies are felt more in the trade, construction and real estate sectors, reflecting the pace of growth of the economy in recent years.
“Therefore, the increase in the profitability of commercial banks derives essentially from the increase in foreign exchange and income from securities, moving away from granting credit to the economy,” he said.
This reality, according to the governor, is “an increased concern and we have been sharing with the Angolan Association of Banks and other institutional actors in order to jointly find the best ways to increase granting of credit, but under more secure conditions.”
Lima Massano added that although the financial system is above the established minimum levels for capital adequacy, “the fact is that the existing risk in the loan portfolio may imply an increase in impairments, with a negative impact on the regulatory solvency of banking institutions.”
Lima Massano ended on a positive note, saying that forecasts by the World Bank, the International Monetary Fund, and the National Bank of Angola point to an improvement in the stability indexes of the banking system in the current half of the year, in contrast with the downturn seen since 2015. (macauhub)