Regulatory Alerts2016-08-04
Instruction No. 05/2016 of August 8, 2016: Impairment Losses for the Credit Portfolio
The Bank of Angola issued Instruction No. 05/2016 to establish mandatory procedures for banking financial institutions to calculate impairment losses on customer credit portfolios in compliance with IFRS standards. The directive defines key terms such as default and restructured credits, mandates individual and collective assessment methodologies for credit exposures, and specifies exemptions for certain state-guaranteed or highly secured exposures. It further requires rigorous documentation, annual model validation through back-testing, and specific financial disclosures to ensure data consistency and regulatory oversight.
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