Africa Angola Banking Finance

Bank of Angola calls extraordinary session of Monetary Policy Commission

The Board of Directors of the National Bank of Angola (BNA) has convened an extraordinary session of its Monetary Policy Commission to be held on 23 October, the Angolan central bank said in a statement released on its website.

The statement said that the adequacy of monetary and exchange rate policy measures and instruments was necessary as part of the ongoing monitoring and evaluation of developments in the money and currency markets.

Meanwhile, the BNA governor recently said in London that more banks operating in Angola may have their operating licenses revoked when the results of the asset quality assessment are released later this month.

Angola currently has 26 banks in operation, according to figures released by the central bank, which in January cancelled the licenses of Banco Mais and Banco Postal and a month later declared the bankruptcy of Banco Angolano de Negócios e Comércio (BANC) due to the inability of shareholders to raise the capital required to meet minimum legal requirements.

“We are working to improve the capacity of our financial sector and if some institutions have to disappear, we are ready for that,” the governor told Reuters, restating that the central bank may have to close down more credit institutions.

José de Lima Massano pointed out that, according to the assessment, any commercial bank that needs to increase its capital will have until June 2020 to resolve the issue and may continue to operate until then. He also recalled that overdue credit represents about 30% of the banks’ loan portfolio.

Source: Macauhub

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