According to the National Bank of Angola (BNA), in Instruction No. 06/23 of July 14, consulted on Friday by Lusa, the global amount of quotas or shares held, directly or indirectly, in non-financial companies cannot exceed 40 percent of the regulatory equity of the participating institution.
Banking financial institutions "cannot hold for a period exceeding three years, consecutively or interspersed, directly or indirectly, shares or quotas whose amount exceeds 25 percent of the capital of a non-financial company", he says.
This instruction on prudential limits for large risks and the holding of shares in non-financial companies points out that the said limits "are not applicable to holding companies subject to supervision by the BNA".
The BNA argues that the directive arises from the need to establish prudential limits on large risks, as well as the holding of stakes in non-financial companies by banking financial institutions.
Only banking financial institutions under central bank supervision, provided for in the General Regime Law for Banking Financial Institutions, are subject to this instrument.
The central bank points out, in the general requirements of this normative instrument, that banking financial institutions must calculate the limits to large risks and their participation in the capital of non-financial companies.
"Bank financial institutions must adopt operational procedures associated with solid, effective and complete internal control policies and processes, to identify all situations of risk concentration", it reads.
The duty of banking financial institutions to report quarterly to the BNA information on major risks and the holding of stakes in non-financial companies on prudential requirements on an individual and consolidated basis is also set out in the instruction.
According to the document, exposures to the Angolan State expressed in foreign currency "are exempt until December 2023, starting to weigh 75 percent until December 2024, and must comply with the provisions of the instrument, from January 1, 2025".
With regard to prudential limits to large risks, the BNA determines that banking financial institutions should not assume large risks before a counterparty or a group of counterparties linked to each other, whose value exceeds their own funds.
"Whenever the large risks relate to holders of qualifying holdings or the group of counterparties linked to each other comprise the same shareholders, the limit is deducted to 10 percent of own funds, except if the large risk is on the entity", he points out.
The BNA instrument also provides for sanctions, emphasizing that non-compliance with the aforementioned provisions constitutes a contravention punishable under the terms of the Law on the General Regime of Banking Financial Institutions.