The Angolan banking sector remained resilient in the second quarter of 2024 despite facing challenges such as exposure to sovereign risk, increased credit risk, and reduced profitability, according to the National Bank of Angola (BNA).
In a statement following last week’s Financial Stability Committee (CEF) meeting, which reviewed the key systemic risks in Angolan banking, the central bank confirmed the decision to keep the conservation reserve at 2.50%, applicable to all financial institutions. The countercyclical reserve, aimed at addressing excessive credit growth, was maintained at 0%, while the reserve for systemically important domestic banks (D-SIBs) like BAI, BFA, BPC, and others remained between 1% and 2%.
The CEF noted that the sector has shown sufficient strength to handle financial risks, as demonstrated by capital and liquidity ratios, which remain above the regulatory minimum. However, challenges persisted in the form of low financial intermediation, a slight decline in asset quality, increased credit risk, and a reduction in profitability, along with exposure to sovereign risk—the potential inability of the state to meet its financial obligations.
The next CEF meeting is scheduled for November 29, 2024, in Luanda.