africa Angola Banking Economy Finance

Angola’s National Bank launches Deposit Guarantee Fund

Bank depositors in Angola will now have their deposits guaranteed with the launch on Tuesday in Luanda by the National Bank of Angola of the Deposit Guarantee Fund, which has an initial allocation of 13.8 billion kwanzas (US$1.767 billion), according to central bank information.

Created through presidential decree no. 195/18, the initial value for setting up the Deposit Guarantee Fund, which is expected to increase in the coming years, was established with the participation of 0.23% of the illegible deposits of all commercial banks.

The governor of the National Bank of Angola, José de Lima Massano, said at the session to launch the fund that Angola joins the approximately 100 countries in the world that already have similar funds, and also has another important instrument to build public trust in the financial sector.

The main purpose of the Angola Deposit Guarantee Fund is to guarantee the repayment of deposits, irrespective of their type, registered by natural and legal resident and non-resident persons, in national or foreign currency, made up of commercial banks authorised to collect deposits in the country, up to an individual limit of 12.5 million kwanzas, thereby covering about 85% of the depositors in the national banking system.

This process covers current accounts and savings accounts of a variety of types, housing savings, immigrant deposits and retirement savings, for example, as well as mandatory and other legally required deposits.

“The existence of a deposit guarantee fund provides depositors with confidence in the scope and coverage of their deposits, promotes public confidence in the financial sector, and provides countries with an orderly process to deal with bank bankruptcies,” said the governor of the Angolan central bank.

Source: Macauhub

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