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Angola’s Banking Regulation Aligns with International Standards
Luanda - Angola’s banking sector has made significant strides in aligning its regulations with international standards, according to a new report by VdA AngolaGLI.
Key Measures for Sustainability and Consumer Protection
The country’s central bank, BNA, has introduced several measures aimed at ensuring the sustainability of banking activities and protecting consumers. Some key measures include:
- Requiring banks to maintain a minimum level of own funds, which must not be less than the minimum amount required for incorporation
- Constituting minimum reserves using relevant net profits
Alignment with Basel II Standards
The report highlights that Angola’s banking regulations have been drafted in line with recent Basel II standards and requirements. While international initiatives on bank capital and liquidity are still being analyzed by BNA, they will only be applicable to Angolan banks if and when conditions are determined by the national regulator.
Rules Governing Bank-Customer Relationships
Law no. 12/2015 regulates banks’ relationships with customers and third parties. The law requires banking financial institutions to:
- Ensure technical capacity
- Act with due diligence
- Provide proper information and assistance
- Handle customer complaints
- Set internal conduct policies
- Preserve confidentiality
- Cooperate with other authorities
- Report credit risks
- Comply with conflict-of-interest and anti-competitive rules
Confidentiality and Conflict of Interest
The report notes that banking financial institutions are required to maintain confidentiality in their dealings with customers. This duty of secrecy covers a wide range of information, including:
- Client names
- Deposit accounts
- Transactions related thereto
Regarding conflicts of interest, the law prohibits banks from granting credit to members of their corporate bodies or equivalents, or to companies or entities in which they have a direct or indirect controlling interest. However, this restriction does not apply to credit operations where financial institutions or holding companies under the same supervision are beneficiaries.
Anti-Competitive Behavior
The report highlights that Angola’s banking regulations aim to prevent anti-competitive behavior by banking financial institutions. Any conduct undertaken with the goal of obtaining a dominant position in monetary, finance, or exchange markets is deemed illicit.
Conclusion
Overall, the report concludes that Angola’s banking regulation has made significant progress in aligning with international standards, ensuring the sustainability of banking activities and protecting consumers. However, further initiatives on bank capital and liquidity are still being analyzed by BNA.