Africa-Press – Angola. The Financial Stability Committee (CEF) of the National Bank of Angola (BNA) recently decided to maintain the Capital Conservation Reserve at 2.50 percent, applicable to all banking financial institutions.
According to a statement from the BNA, the decision was taken at a meeting held in the first week of this month, which aimed to assess the main systemic risk factors with an impact on the national financial stability, observed during the fourth quarter of 2024, and to adopt the corresponding mitigation measures.
The CEF also decided to maintain the capital reserve for banking financial institutions of domestic systemic importance (D-SIBs) at between 1% and 2%, the countercyclical capital reserve at 0%, applicable to all banking financial institutions, and the application of capital conservation measures, in accordance with the provisions of Communication no. 08/2021, dated July 5, to banking financial institutions in a situation of non-compliance with the combined reserve requirement.
According to the statement, during the period in question, the banking sector demonstrated sufficient soundness to deal with the risks inherent in financial activity, as evidenced by the prudential capital and liquidity indicators, which are within the minimum regulatory limits.
It adds that risks and vulnerabilities persist in the banking sector, such as the deterioration of asset quality indicators, with an increase in credit risk, although mitigated by the level of impairments recognized.
The exposure to sovereign risk, despite its declining trend, the concentration of activity in a few banking financial institutions, and the limited depth of the secondary securities market, with implications for the liquidity of banking financial institutions, are also identified as risks and vulnerabilities in the banking sector.
The next meeting of the CEF will be held on May 30 in Luanda.
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