CIRCULAR LETTER NO. 03/2024

SUBJECT: FINANCIAL SYSTEM

• Manual on Crisis Prevention and Management and Bank Resolution Planning

Whereas the Banco Nacional de Angola, in its capacity as resolution authority, prepares a resolution plan for each authorized Banking Financial Institution; And whereas it is necessary to ensure the prerequisites for applying resolution measures, as provided in paragraph 1 of Article 251 of Law No. 14/21, dated May 19, the General Regime of Financial Institutions Law, with the objective of guaranteeing financial stability, as well as protecting the real economy from negative impacts caused by Banking Financial Institutions in difficulty, which are at risk or in a state of insolvency; For the purposes of analysis, monitoring and better oversight of Banking Financial Institutions that are at risk or in a state of insolvency, as well as the manner in which they plan to address situations within the context of financial imbalance, under Resolution Planning, this Circular Letter serves to guide the following:

1. Banking Financial Institutions must prepare a Manual on Crisis Prevention and Management and Bank Resolution Planning.
2. In preparing the Manual on Crisis Prevention and Management and Bank Resolution Planning, Banking Financial Institutions must consider, at a minimum, the following aspects:
   a) Identification of the process developed for preparing an effective crisis management plan; b) Identification of potential risks, preparation of responses to these risks, as well as the implementation of strategies to mitigate possible damages; c) Definition of responsibilities for each team member during a crisis scenario, as well as efficient communication channels; d) Identification of procedures to restructure a distressed Banking Financial Institution and the applicable legal tools; e) Definition of procedures necessary to identify, assess, and mitigate potential risks that may affect the stability of the Banking Financial Institution; f) Conducting regular crisis simulations and exercises to test and refine the crisis management plan; g) Definition of strategies to identify, assess, and mitigate potential risks, as well as establishing clear procedures for action in crisis situations; and h) Definition of a crisis management plan to minimize damage, protect institutional reputation, and ensure business continuity.

This Circular Letter enters into force on the date of its publication.
Luanda, July 15, 2024
FINANCIAL STABILITY DEPARTMENT

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Analdete Mami Nuamietu Andrade Garcia
-Deputy Director-