Banco Comercial e de Investimentos is the most systemically important credit institution in Mozambique

22 April 2020

Banco Comercial e de Investimentos (BCI) is Mozambique’s systemically most important credit institution, followed by Millennium BIM and the Standard Bank, said the Bank of Mozambique on publishing the classification of banks operating in the country based on this indicator.

The statement recalled that by 30 April every year the central bank has to publish a list of credit institutions classified as D-Sibs or Almost D-Sibs, based on the data reported on 31 December of the previous year.

The proposed methodology follows an approach based on an average score of three indicators with different weights, namely, size with a weight of 50%, interconnection with 25% and possibility of substitution with the remaining 25%.

After the calculation of each indicator and its score by the respective factor, the total determines that credit institutions that score over 130 points are classified as D-Sibs, those that score between 65 and 130 points are Almost D-Sibs and those with lower scores are defined as having no systemic importance.

The Bank of Mozambique reported that BCI scored 266 points, Millennium BIM 228 points, Standard Bank 144 points and the Absa Bank de Moçambique 110 points, and all the remaining banks operating in the country have a score lower, and therefore not systemically important.

BCI has two major shareholders – the Portuguese financial state group Caixa Geral de Depósitos with a stake of 51% of Parbanca SGPS and 10.51% of the Caixa Geral de Depósitos bank and Banco BPI, 100% controlled by the CaixaBank group of Spain, with 35.67%. (macauhub)