The results of the banking system's Asset Quality Assessment (AQA) exercise, which aims to ensure its stability, soundness and resilience, made to 13 banks operating in Angola, which accounted for 92.8 percent of total assets at 31 December 2018, concluded that the banking system “is globally robust”.
The assessment also revealed that there is a need to recapitalize “a small number of banks” and that BPC - Banco de Poupança e Crédito and BE - Banco Económico represent around 96 per cent of total recapitalization needs against the minimum requirements required at 31 December 2018.
This work was conducted by the National Bank of Angola with the support of consultant Deloitte & Touche - Auditores, and the banks hired independent external audit firms.
The 13 banks evaluated are Banco Millennium Atlântico, Banco Angolano de Investimentos, Banco Caixa Geral Angola, Banco de Comércio e Indústria, Banco de Desenvolvimento de Angola, Banco Económico, Banco de Fomento Angola, Banco BIC, Banco de Negócios Internacional, Banco de Poupança e Crédito, Banco Sol, Finibanco Angola and Banco Keve.
The National Bank of Angola instructed banks to "record the adjustments identified" in the AQA in the financial statements for the year ended 31 December 2019, taking into account the evolution of their assets during 2020.
Following the close of that financial year, Angolan banks "must assess the additional capital needs and ensure compliance with the prudential limits set by regulation in force by 30 June 2020," according to the assessment.
According to the central bank, the objective of the coverage of the AQA was ensured by the total average coverage of the sample of banks' loan portfolio of around 67 per cent, and in terms of sample characterization, around 81 per cent corresponded to private companies, 17 per cent to the public sector and 2 per cent to private individuals.
