Banks under review in Angola that require capital increases will have until June 2020 to rectify the situation, the Angolan National Bank (BNA) governor, José de Lima Massano, announced on Friday in Luanda.
The Angolan central bank has been analyzsing the asset quality of Banco Angolano de Investimento (BAI), Banco de Fomento Angola (BFA), Banco Comércio e Indústria (BCI), Banco Poupança e Crédito (BPC), Banco Internacional de Investimento (BIC), Banco Millennium Atlântico (BMA), Banco Sol, Banco de Negócios Internacional (BNI), Banco de Desenvolvimento de Angola (BDA), Caixa Angola (CA), Banco de Comercio Angolano (BCA) and Banco Económico (BE).
José de Lima Massano, who was speaking at the end of the meeting of the Monetary Policy Commission, also announced that the central bank would announce on 31 December which banks need to adjust their share capital.
“Banks with capital increase needs will have until April 2020 to inform the central bank of the measures they intend to take and by June 2020 to have the situation settled,” said the governor.
If the situation is not settled, the BNA may require them to implement a restructuring programme, which may lead to a merger or entry of new shareholders, and some banks may, in extreme cases, lose their license.
The programme for assessing the quality of commercial banks’ assets was decided by the National Bank of Angola after credit defaults compared to the total credit portfolio increased from 12.6% in 2016 to 28% in 2017, although 90% of the overall amount is concentrated in a single bank.