Regulatory Alerts2016-06-22
Notice No. 09/2016 of June 22: Prudential Limits on Large Exposures
The Bank of Angola issued Notice No. 09/2016 to establish prudential limits on large exposures and holdings in non-financial enterprises for financial institutions under its supervision. The regulation caps individual large exposures at 25% of regulatory capital, reduces this to 10% for exposures to institutions with qualified participations, and limits the aggregate of the top 20 large exposures to 300% of regulatory capital. It further restricts direct or indirect holdings in non-financial enterprises to 15% per entity and 40% in aggregate, while mandating robust internal risk control policies and specific calculation methodologies for off-balance sheet items.
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