Africa Angola Banking Economy Finance

Angola: Bank assets account for 63 percent of GDP

The assets of Angolan commercial banks in 2016 represented about 63 percent of the Gross Domestic Product (GDP), State secretary for the Budget Aia-Eza da Silva said Thursday.

Given the importance of banking activity in the economy, the secretary, who was speaking in the presentation of the bank study under analysis by Deloitte, said it was fundamental to know deeply the asset reality of banking institutions.

According to data from the Deloitte banking study, released in Luanda this year, the volume of aggregate assets grew 16 percent in relation to 2015, reaching 8,702 billion kwanzas in 2016, when the GDP of the country, according to OGE 2017 projections, is valued at EUR 109 billion (21 trillion kwanzas).

He said that banking is the most important dimension of the Angolan financial system, a business that involves many stakeholders and carries risks that considerably affect families and companies.

He considered that regulation and supervision play a decisive role, identifying imprudent risks of financial institutions and manifesting the conflicts of interests of their managers who often act on the primary benefits of their shareholders, forgetting their activity.

Source: Angop

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