Key BNA Regulations for Investors
The Banco Nacional de Angola (BNA) issues regulations through Avisos (notices), Instrutivos (instructions), and Directivas (directives). These instruments govern the operational framework for Angola’s 26 commercial banks and directly affect investors, issuers, and intermediaries operating in the capital markets.
Capital Adequacy Requirements
Angola’s capital adequacy framework draws on Basel II/III principles, adapted for the domestic market:
| Requirement | Minimum |
|---|---|
| Minimum Share Capital | Kz 7.5 billion (commercial banks) |
| Capital Adequacy Ratio (CAR) | 10% of risk-weighted assets |
| Tier 1 Capital Ratio | 7% minimum |
| Leverage Ratio | 3% minimum |
| Capital Conservation Buffer | 2.5% (phased implementation) |
Banks must report their capital positions to the BNA on a quarterly basis, with additional ad hoc reporting required when ratios approach minimum thresholds.
Provisioning Rules
The BNA mandates specific provisioning levels for credit risk, classified by loan performance:
- Category A (Normal): 1% general provision
- Category B (Under Observation): 3% provision
- Category C (Substandard): 10-20% provision
- Category D (Doubtful): 50% provision
- Category E (Loss): 100% provision
These provisioning requirements apply to all on-balance-sheet credit exposures and select off-balance-sheet items. The BNA periodically revises classification criteria through Instrutivos.
Foreign Exchange Regulations
The BNA’s FX framework is governed by a series of Avisos that establish rules for:
- Current account transactions: Export proceeds must be repatriated within 90 days. Importers access FX through the interbank market or BNA auctions.
- Capital account transactions: Foreign direct investment inflows are permitted under the Private Investment Law. Profit and dividend repatriation require documented approval.
- Aviso 15/19: Enables non-resident investors, including diaspora Angolans, to invest in Angolan securities and repatriate returns through designated accounts.
The reference exchange rate stands at USD/AOA 914.60, managed through a crawling band mechanism.
Liquidity Requirements
Banks must maintain a minimum liquidity ratio of 25%, measured as the ratio of liquid assets to short-term liabilities. The BNA also sets mandatory reserve requirements, currently at 22% for Kwanza deposits and 14% for foreign currency deposits.
Reporting Obligations
All licensed banks must submit periodic reports to the BNA covering financial statements, large exposure limits, related-party transactions, and AML/CFT compliance. The regulatory calendar details all reporting deadlines. Failure to meet reporting obligations can result in sanctions, including fines and restrictions on business activities.
Relevance for Capital Markets Participants
Investors in BODIVA-listed bank equities such as BAI, BFA, and BCGA should monitor BNA regulatory changes closely, as new prudential requirements directly affect bank profitability, dividend capacity, and capital allocation decisions.