Banking Regulation in Angola: An Overview

This article provides an analysis of the key points related to banking regulation in Angola, as outlined in the book “VdA Angola GLI – Banking Regulation 2020, Seventh Edition”.

Capital Requirements

Angola’s bank capital requirements are aligning with European standards, particularly Basel II. However, international initiatives on bank capital and liquidity are still under development and will only apply to Angolan banks if and when determined by the national regulator.

Key Points:

• Bank capital requirements in Angola are aligned with Basel II standards
• International initiatives on bank capital and liquidity are still under development
• National regulator determines applicability of international initiatives

Rules Governing Banks’ Relationships with Customers and Third Parties

Angola’s banking regulations, as outlined in Law no. 12/2015, emphasize the importance of market conduct supervision. The following key points highlight the rules governing banks’ relationships with customers and third parties:

Technical Capacity

• Banking financial institutions must ensure high levels of competence in interacting with customers
• Institutions must possess necessary technical means to deliver services efficiently

Diligence and Neutrality

• Directors and employees must act with due diligence, neutrality, loyalty, discretion, and respect when dealing with clients and other institutions

Information Disclosure

• Clients are entitled to clear, complete, and proper information about banking products and services
• Information must include interest rates and commissions charged

Confidentiality

• Banking financial institutions have a duty of secrecy covering client names, deposit accounts, transactions, and other banking operations
• Exceptions apply in cases where disclosure is required by regulatory authorities or deemed necessary for judicial proceedings

Conflict-of-Interest and Anti-Competitive Behavior

• Banking financial institutions are prohibited from granting credit to members of their corporate bodies or entities with a direct or indirect controlling interest
• Institutions are also prevented from engaging in anti-competitive behavior, such as obtaining a dominant position in monetary, finance, or exchange markets

These regulations demonstrate Angola’s commitment to ensuring that banking financial institutions operate in a transparent and fair manner, prioritizing the interests of their clients and contributing to a stable and competitive financial system.