Governor of the National Bank of Angola admits more banks may close

18 January 2019

The governor of the National Bank of Angola has admitted more banking licenses may be revoked in the country, two weeks after the licenses of Banco Mais and Banco Postal were revoked, financial news agency Bloomberg reported.

José de Lima Massano told the news agency that the process of checking the assets of banks operating in the domestic market, following a memorandum with the International Monetary Fund (IMF), has been in progress since last September.

With no date for completion of this operation, the governor noted that commercial banks had made a “remarkable effort” to detect impairments in their portfolios but warned that “some banks may have to increase capital, given the magnitude and the deterioration of the quality of credit granted.”

The governor of the BNA stressed that the central bank is not concerned about the number of banks operating in the market, but rather “interested in ensuring that the funds held by the banks are safe.”

At a meeting held at the beginning of the year to announce the revocation of the licenses of Banco Mais and Banco Postal banks, Massano stressed that the process of assessing the quality of the assets held by the banks may result lead to further adjustments, as well as an increase in the minimum capital and regulatory own funds.

“Mergers and/or closures cannot be ruled out,” the governor of the Angolan central bank said at the time. (macauhub)

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