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2012-03-30

Notice No. 07/2012, dated March 30

The National Bank of Angola issued Notice No. 07/2012 to regulate the fixed asset limit for supervised financial institutions, capping total net investments in real estate and permanent assets at 100% of Regulatory Own Funds. Institutions exceeding this limit face branch expansion restrictions and other regulatory measures, while those in non-compliance must submit a regularization plan within 30 days and execute it within six months. The Notice immediately supersedes prior regulations, including Notice No. 07/2007, and enforces existing Financial Institutions Act sanctions for non-compliance.

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Banco Nacional de Angola

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Published in the Official Gazette, Series I, No. 62, on March 30 NOTICE NO. 07/2012 of March 30

Whereas it is necessary to adjust the regulations regarding the fixed asset limit for financial institutions established by Notice No. 07/2007 of September 12; In accordance with the combined provisions of items d) and e) of Article 21 of Law No. 16/10, dated July 15 (National Bank of Angola Act), and Article 77 of Law No. 13/05, dated September 30 (Financial Institutions Act); In the exercise of the powers conferred upon me by Article 51 of the National Bank of Angola Act; I HEREBY DETERMINE:

Article 1. (Subject Matter) This Notice aims to regulate the fixed asset limit for financial institutions under the supervision of the National Bank of Angola.

Article 2. (Acquisition of Real Estate) Financial institutions may not acquire real estate that is not indispensable to their premises and operations or to the pursuit of their corporate purpose.

Article 3. (Fixed Assets)

  1. The total resources invested in fixed assets, net of depreciation and amortization, and after deducting financial participations, may not exceed 100% (One Hundred Percent) of the value of Regulatory Own Funds (FPR).
  2. The limit established in this article must be observed by financial institutions, based on individual and consolidated financial statements.

Article 4. (Restrictions for Non-Compliance) A financial institution or group that exceeds its respective fixed asset limit shall be subject to the following restrictions, without prejudice to other applicable penalties: a) Prohibition on opening new branches; b) Other restrictions, as determined by the National Bank of Angola.

Article 5. (Regularization Plan)

  1. In the event of non-compliance regarding the maintenance of Regulatory Own Funds (FPR) to cover fixed assets held by the institution or group, the National Bank of Angola shall convene the legal representatives of the entity for clarification regarding the measures to be adopted to regularize the situation.
  2. Within a maximum period of 30 (thirty) days, the financial institution must submit to the National Bank of Angola the regularization plan, along with its corresponding execution schedule, which may not exceed 6 (six) months.

Article 6. (Inclusion or Exclusion of Permanent Investments)

  1. The National Bank of Angola may include in the fixed asset limit other applications characterized as permanent in nature.
  2. The National Bank of Angola may exclude from the fixed asset limit applications characterized as exceptional in nature.

Article 7. (Sanctions) The financial institution or group is subject to the sanctions provided for in the Financial Institutions Act in case of non-compliance with the required fixed asset limit and failure to meet the requirements established in this Notice.

Article 8. (Repealing Clause) All regulations contrary to this Notice are hereby repealed, notably Notice No. 07/2007 of September 12.

Article 9. (Entry into Force) This Notice enters into force immediately.

PUBLISHED Luanda, on July 13, 2011

THE GOVERNOR JOSÉ DE LIMA MASSANO

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