Banco Nacional de Angola assesses asset quality of commercial banks

7 January 2019

The National Bank of Angola (BNA) this year will begin assessing the quality of assets of Angolan commercial banks, based on a memorandum signed with the International Monetary Fund (IMF), the central bank governor announced on Friday.

José de Lima Massano, during a meeting with the press to announce the removal of the operating license of two commercial banks, said the move would result in new adjustments as well as strengthening of minimum capital stock and regulatory own funds.

The governor said that when the asset assessment process begins, there may be banks with levels of provisions that fall short of what are as yet unknown risks for the central bank, according to the Angop news agency.

To this end, the BNA has been in contact with the external auditors of the banks so that, now that the closing of the 2018 accounts and the preparation of the general meetings is being carried out, to ensure adequate coverage of all the risks that commercial banks may incur.

Massano also said that the need to adjust and increase capital may arise this year, and there may be bank mergers and/or closures.

Among 30 banks operating in the Angolan market, the Mais and Postal banks were the first institutions to succumb to the prudential measures adopted by the BNA, with a focus on increasing equity and regulatory capital.

Banco Banc, which has been the target of an intervention by the National Bank of Angola since last June, was not targeted by the BNA, but the central bank continues to work with shareholders so that within the intervention period they can raise capital to levels required by law. (macauhub)

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