Bank loans to the economy represent only 16% of banking assets and a transformation rate from deposits into loans of 35%.
According to the governor of the National Bank of Angola (BNA), José de Lima Massano, the figures as of 30 June show that credit to the Angolan economy “still has a modest weight in the national economy.
Speaking Friday, at the 10th Banking Forum, promoted by Jornal Expansão, he noted that, in relation to the business sector, bank credit was no more than 12.5 percent of non-oil GDP. In the private sector, it does not reach 3%.
In the national economy, he added, the levels of credit concentration by sector are high.
The trade sector dominates, with about 25% of all credit granted, and tends to be short-term, i.e. credit has essentially served to support imports of consumer goods, some with great potential for local production, such as food which makes up the essential foodstuff.
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This is fast granting credit, as it has contained risk, since it is only sustainable in the short term, depending on the constant availability of foreign currency.
Even so, the rate of non-performing loans is high, at around 22%, despite the 34% decline in the first six months of the year, associated with the restructuring process of the main public capital bank, such as the Savings and Credit Bank (BPC) and the Trade and Industry Bank (BCI).
On the supply side, the main finding is the reliability of the information submitted to the banks for analysis and decision, resulting from the lack of organised accounting in many cases, although the poor viability of the projects submitted is often mentioned.
The weakness of the guarantee registration system and the slowness in handling commercial disputes are also among the main constraints on the supply side.
On the demand side, on the other hand, excessively bureaucratic and sometimes “unprofessional and time-consuming” procedures for gathering information, analysis and contracting have been pointed out as constraints.