The National Reserve Bank of Angola (BNA) decided to initiate the formal process to obtain regulatory and supervisory equivalence from the European Union Commission, a process that aims to facilitate the cross-border activity of financial institutions.
The European Union (EU) adopted in 2013 a legislative package that includes the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD), with the aim of strengthening the regulation of the banking sector and ensuring a more solid and secure financial system.
According to a BNA press release, the implementation of regulations and supervisory processes similar to those applicable in the EU and the exchange with the Eurozone supervisory authorities will definitely contribute to a more robust, secure and sustainable national financial system.
Obtaining equivalence from the Angolan Central Bank will allow a much more significant involvement of EU financial institutions with Angola and should result in mutual benefits for the markets and institutions of the various EU countries and Angola.
The process is expected to take up to 5 years, phased in three stages, the first being the alignment of regulations and prudential supervision processes (SREP), the second the implementation of the supervisory cycle with regulations and equivalent processes in collaboration with the European Supervisory Authorities and the third stage, the application for Equivalence of Supervision and involvement of International Supervisory Authorities.
The Capital Requirements Regulations (CRR) contain the detailed prudential requirements for credit institutions in terms of capital requirements, definition and measurement of risk for credit, market, liquidity and leverage.
Source: Angop