Regulatory Alerts2019-08-27
Instruction No. 08/2019 of August 27 – Financial System: Credit Impairment Losses for the Credit Portfolio
The National Bank of Angola issued Instruction No. 08/2019 to mandate Banking Financial Institutions under its supervision to adopt standardized procedures for measuring and recognizing expected credit impairment losses in alignment with IFRS 9. The directive establishes a three-stage classification model based on significant increases in credit risk, requiring institutions to calculate 12-month or lifetime expected losses depending on the exposure’s risk profile and impairment status. It further mandates the integration of reasonable prospective macroeconomic information, defines strict criteria for default, restructuring, and low-risk exposures, and prescribes conservative measurement methodologies with mandatory back-testing.
Share