Evaluation of the banking sector is expected to bring little news, says the governor of Angolan central bank

10 June 2019

The current assessment process of 12 banks in the Angolan financial system is expected to bring little news, said the governor of the National Bank of Angola recently, who mentioned the possibility of a few banks having to increase their capital.

José de Lima Massano, speaking last week at the Angola Oil and Gas 2019 conference, recalled the efforts that the central bank has been making to strengthen the country’s commercial banking sector which is, “currently the economy’s main financier.”

The governor, who did not say when the evaluation process would be completed, added that “from the point of view of solvency ratios,” the system, currently composed of 26 banks, “is healthy, considering that the regulatory ratio is 10% and the bank sector has an average of 30%.”

The official also announced the arrival in Luanda this month of a delegation from the United States Federal Reserve to see if the Angolan authorities have taken the necessary steps for the Angolan banking system to be awarded correspondent status once again.

Massano also said that the problems are being overcome, as the National Bank of Angola has defined a set of rules and actions that commercial banks are following effectively.

The lack of access to dollars led the Angolan central bank to carry out its auctions in euros, which became the benchmark for determining the kwanza’s price against a basket of currencies, including the dollar.

The governor recalled the time, between 2015 and 2016, when US correspondent banks ended their relationship with the Angolan banking system but gave assurances that this is being “overcome” as confidence is recovered. (Macauhub)