Measures introduced to adjust the minimum capital and equity of Angola’s financial institutions ordered in March to be completed by 31 December should lead to mergers and acquisitions in the system, according to the governor of the National Bank of Angola.
José de Lima Massano told Jornal de Angola that, as the deadline for complying with the notice of capital adequacy approaches, it has been noted that all operators are likely to increase their capital stock under the terms determined by the BNA, despite the difficulties they are facing to comply with the measure.
Jornal de Angola reported that the new expectations of the governor of the BNA are a change compared with statements made last October in London in which he said that bank closures are expected due to the difficulties that some operators face in adjusting capital.
“Some banks have found it difficult to follow up, but what is certain is that as we approach the deadline, we have been noting that a large majority of banks will comply, if not all,” the governor predicted.
Lima Massano also said that given that the regulatory framework imposed by the BNA is “increasingly demanding” there may be banks that join forces, suggesting a process of mergers and acquisitions, which is the recommendation that the BNA has given to operators, rather than saying “let’s close banks.”
Last March the BNA issued Notice 2/2018 on “Adequacy of Minimum Capital Stock and Regulatory Equity of Banking Financial Institutions,” under which commercial banks operating in Angola would have a deadline until the end of the year to increase share capital from 2.5 billion to 7.5 billion kwanzas (US$35 million). (macauhub)