Six banking institutions will be required to increase their mandatory reserves next January due to their systemic importance in the Angolan market and financial system, the National Bank of Angola (BNA) said on Tuesday (9), in a report cited by Lusa.
According to the BNA, these institutions are Banco de Fomento Angola (BFA), Banco Angolano de Investimentos (BAI), Banco Millennium Atlântico (BMA), Banco BIC, Standard Bank Angola (SBA) and Banco de Poupança e Crédito.
Thus, the central bank states that BFA, BAI, BMA, Banco BIC, SBA and BPC must establish, from January 2026 onwards, mandatory reserves of 2% for the first two banks and 1.5% for the others, to be composed of own funds.
This reserve aims to strengthen the capital of banks with systemic importance, taking into account their size, consumer exposure, relevance to the Angolan economy, complexity, degree of interconnectedness with other institutions in the national financial sector and, in the event of insolvency, the potential contagion these institutions could cause to the rest of the financial and non-financial system, the note states.
The reserve for systemically important banks “must be composed of core own funds and be applicable on an individual, sub-consolidated or consolidated basis.”
The regulator also notes that banking institutions designated as domestically systemically important in November 2024, but not included in the mentioned list, “must maintain compliance with their capital reserve requirement only until 31 December 2025.”