Regulatory Alerts2021-10-27
Guideline No. 21-2021 of October 27
The National Bank of Angola issued Guideline No. 21-2021 to establish prudential limits on large exposures and restrict banking financial institutions' equity participation in non-financial companies. The regulation caps single-counterparty large exposures at 25% of Level 1 own funds (reduced to 10% for qualifying holdings), limits the top 20 exposures to 300%, and restricts direct or indirect holdings in non-financial firms to 15% per entity and 40% in aggregate. Institutions must implement robust concentration risk controls, report data quarterly on individual and consolidated bases, and comply with the new framework by December 31, 2021, under penalty of sanctions.
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