Regulatory Alerts2025-01-20
Directive No. 02/2025 on Financial System Stability – Guiding Principles for Improving Resolvability
The National Bank of Angola, through its Department of Financial Stability, issues Directive No. 02/2025 to establish binding criteria and reporting procedures for Banking Financial Institutions, mandating enhanced governance, Minimum Requirement for Own Funds and Eligible Liabilities (MREL) compliance, and liquidity simulations to ensure orderly crisis resolution. The directive requires institutions to implement robust internal controls, prepare detailed self-assessment reports, and maintain eligible recapitalization instruments aligned with their preferred resolution strategy. By clarifying single and multiple points of entry frameworks, the directive ensures institutions can absorb losses, protect taxpayers, and minimize systemic impact during financial stress scenarios.