Regulatory Alerts2020-08-21
Notice No. 18/2020, dated August 21
The Bank of Angola issued Notice No. 18/2020 to adjust the minimum share capital and regulatory own funds for non-bank financial institutions, specifically targeting credit guarantee companies amid current macroeconomic conditions. The amended Article 2 of Notice No. 8/2018 now mandates minimum capital thresholds ranging from Kz 25 million for microcredit and credit cooperative companies to Kz 250 million for credit guarantee companies, with specific amounts set for payment service providers, exchange houses, financial assignment firms, and financial leasing companies. This Notice repeals the previous capital requirements under Article 2 of Notice No. 8/2018, resolves interpretative doubts through the Bank's authority, and takes effect upon publication.
PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 123, ON AUGUST 12 NOTICE NO. 18/2020 SUBJECT: FINANCIAL SYSTEM
- Adjustment of the Minimum Share Capital and Regulatory Own Funds of Non-Bank Financial Institutions
- Amendment to the wording of paragraph 1 of Article 2 of Notice No. 8/2018, dated November 29 Whereas it is necessary to define the minimum value of share capital and regulatory own funds for Credit Guarantee Companies subject to the supervision of the Bank of Angola in light of the current macroeconomic context; In the exercise of the powers conferred upon me by the combined provisions of paragraphs d) and f) of paragraph 1 of Article 21, and of paragraph 1 of Article 51, both of Law No. 16/10, dated July 15 - Bank of Angola Law, combined with the provisions of paragraph 1 of Article 16 of Law No. 12/15, dated June 17 - Framework Law for Financial Institutions. I HEREBY DETERMINE: Article 1. (Amendment to the Wording of Paragraph 1 of Article 2 of Notice No. 8/2018, dated November 29) Paragraph 1 of Article 2 of Notice No. 8/2018, dated November 29, is amended to read as follows: “Article 2. – (Share Capital and Regulatory Own Funds)
- Non-Bank Financial Institutions must have their share capital fully paid up and maintain regulatory own funds at a minimum value of:
CONTINUATION OF NOTICE NO. 18/2020 Page 2 of 2 a) Kz 70,000,000.00 (seventy million Kwanzas) for Payment Service Companies; b) Kz 50,000,000.00 (fifty million Kwanzas) for Exchange Houses; c) Kz 100,000,000.00 (one hundred million Kwanzas) for Financial Assignment Companies; d) Kz 100,000,000.00 (one hundred million Kwanzas) for Financial Leasing Companies; e) Kz 25,000,000.00 (twenty-five million Kwanzas) for Credit Cooperative Companies; f) Kz 25,000,000.00 (twenty-five million Kwanzas) for Microcredit Companies; and g) Kz 250,000,000.00 (two hundred and fifty million Kwanzas) for Credit Guarantee Companies”. Article 2. (Repeal) The provisions of paragraph 1 of Article 2 of Notice No. 8/2018, dated November 29, are hereby repealed. Article 3. (Interpretation and Omissions) Any doubts and omissions arising from the interpretation and application of this Notice shall be resolved by the Bank of Angola. Article 4. (Entry into Force) This Notice shall enter into force on the date of its publication. PUBLISHED. Luanda, August 4, 2020. THE GOVERNOR JOSÉ DE LIMA MASSANO