Regulatory Alerts2019-12-26
Added · Updated
Directive No. 13/DSB/DRO/2019: Guide on AQA Methodology Implementation Recommendations for the 2019 Fiscal Year
Banking Financial Institutions supervised by the Banco Nacional de Angola must apply specific methodologies for the 2019 Asset Quality Assessment (AQA) closing, including defined probability of default (PD) and loss given default (LGD) assumptions for cash and placements, and specific discount rates for real estate collateral based on evaluation age and scenario. The directive mandates the use of weighted scenarios (70% base, 10% favorable, 20% adverse) for individual credit analysis and requires the use of Immediate Probable Transaction Value (IPTV) with a minimum 5% selling cost for assets held for sale. Non-compliance constitutes a violation punishable under the Basic Law of Financial Institutions, and the directive enters into force upon publication.