An intervention by the National Bank of Angola in Banco Angolano de Negócios e Comércio (BANC) has been extended for 90 days, starting on 26 December, the central bank announced in a statement released on Wednesday.
The Angolan central bank announced on 26 June that it had suspended BANC’s board of directors and appointed new provisional directors to ensure the protection of depositors and the fulfillment of the institution’s other responsibilities.
The latest statement also announced that the central bank has approved the extension of the mandate of two of the three interim directors responsible for the implementation of extraordinary measures in the private bank, as well as evaluating the preliminary report on the assets and liabilities of BANC.
According to the central bank these moves are intended to stabilise the bank’s equity situation and “restore adequate levels of regulatory liquidity and solvency”.
The measure was taken because the current shareholders are not available to proceed with the capital increase determined by the central bank, in line with BNA notice no. 02/2018, which obliges Angolan banks to raise the minimum capital stock of 2.5 billion to 7.5 billion kwanzas (about US$30 million) by the end of this year.
The Angolan press reported that there are a number of banks finding it difficult to meet the capital requirements determined by the National Bank of Angola, with the Angola24horas website reporting that four – Banco Yetu, Banco de Investimento Rural, Banco Prestige and Banco Postal – of the 29 banks operating in the country may be given an additional period to increase their capital stock.
Last November, the governor of the National Bank of Angola, José de Lima Massano, told the Jornal de Angola newspaper that measures to adjust minimum capital and financial institutions’ own funds ordered in March to be completed by 31 December should lead to mergers and acquisitions in the system.
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.