Regulatory Alerts2016-08-08
Instruction No. 16/2016 of August 8 on the Calculation and Requirement of Regulatory Own Funds for Operational Risk
The Bank of Angola issues Instruction No. 16/2016 to regulate the technical specifications for calculating regulatory own funds required to cover operational risk for financial institutions. The document establishes three calculation methodologies—the Basic Indicator Approach, the Standardized Approach, and the Alternative Standardized Approach—each with specific formulas, risk factors, and eligibility criteria. Institutions must obtain prior authorization from the Bank of Angola to use the Standardized or Alternative Standardized Approaches and are subject to sanctions for non-compliance with these mandatory norms.
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