Banco Comercial e de Investimentos (BCI), Standard Bank and Millennium bim are the three domestic credit institutions with the highest systemic importance in Mozambique, according to the latest assessment published by the Bank of Mozambique (BoM).
The ranking, released on 30 April, follows the criteria set out in Article 8 of Chapter II of Notice No. 10/GBM/2018. The document establishes that the list of credit institutions considered to be of Domestic Systemic Importance (D-SIB) must be updated annually based on data reported by 31 December of the previous year.
The methodology adopted by the central bank is based on an average score obtained from three indicators with different weights: size, with a 50% weighting; interconnectedness, with 25%; and substitutability, also with 25%. Institutions scoring more than 130 points are classified as D-SIBs, between 65 and 130 points are considered Quasi-D-SIBs, and below 65 points are considered non-systemically important.
In the assessment for 2024, BCI leads the ranking with 230 points, followed by Standard Bank with 176 points and Millennium bim with 175 points. These three institutions were therefore classified as D-SIBs and will have to meet additional capital requirements under current regulations. BCI is included in Tier 2, which requires it to maintain +3.0% of Tier 1 and Tier 2 capital. Standard Bank and Millennium bim are in Tier 1, which requires +2.0% of additional capital.
BCI, Standard Bank and Millennium bim are the three domestic credit institutions with the greatest systemic importance in the country.
Also according to the classification, Absa, with 115 points, and Moza Banco, with 75 points, continue to be classified as Quasi-D-SIBs and must comply with enhanced prudential requirements, albeit lower than those of the core banks.
Compared to the previous year, the Bank of Mozambique highlights that Standard Bank and Millennium bim have swapped positions, ‘as a result of Standard Bank obtaining a higher score in 2024.’
The statement also emphasises that the periodic assessment of the systemic importance of institutions aims to ensure the soundness of the financial system, protect macroeconomic stability and prevent risks with the potential for widespread contagion. The identification of D-SIBs allows the regulator to apply specific measures to strengthen their shock absorption capacity and reduce the likelihood of collapse with systemic impact.
In total, five institutions are included in the list of banks with some degree of systemic importance, in a sample that analyses around thirty banking operators registered in the country. The classification is based on quantitative data, following a standardised methodology that ensures transparency and comparability between institutions.
Source: Bank of Mozambique
