Regulatory Alerts2022-10-20
Instruction No. 12/2022 of 19 October on Prudential Limits for Large Exposures and Holdings in Non-Financial Enterprises
The National Bank of Angola issued Instruction No. 12/2022 to establish prudential limits on large exposures and holdings in non-financial enterprises for banking financial institutions under its supervision. The directive mandates that exposures to a single counterparty or group must not exceed 25% of Tier 1 capital, with a reduced 10% limit for qualifying holdings, while aggregate holdings in non-financial enterprises are capped at 15% per entity and 40% overall. Institutions must implement robust internal controls, report data quarterly on individual and consolidated bases, and face capital surcharges of 1250% risk weighting plus an 8% own funds requirement for any breaches, with full compliance required by January 2024.
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