Regulatory Alerts1994-12-27
Directive No. 6/DSB/94
The Banking Supervision Directorate of Angola mandates that financial institutions settle advances to depositors within a maximum of 90 days while adhering to the sound banking practices outlined in Instruction No. 1/94. Financial institutions must implement internal analytical controls to track each advance's beneficiary, date, and value, recording them in accounts 2202 or 2212. Upon maturity, these amounts must be reclassified to the "Loans, Securities and Accrued Interest" account and reported as granted credit to the National Bank of Angola.
DIRECTIVE NO. 6/DSB/94 SUBJECT: - FINANCIAL INSTITUTIONS
- Active Operations
- Advances to Depositors
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Financial Institutions, when granting advances to depositors to cover potential debit balances in Current Deposit accounts - MN, shall observe the principles of sound banking practice referred to in Instruction No. 1/94 of April 22.
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Operations relating to advances to depositors shall be settled within a maximum period of 90 days and accounted for in accordance with the provisions of Directive No. 5/DSB/94 of this date. Financial Institutions shall adopt an internal analytical control system that allows individual identification of the beneficiary, the date, and the value of the granted advance, which shall be recorded in accounts 2202 or 2212.
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Upon expiration of the aforementioned period, the respective amounts shall be transferred to account "28-LOANS, SECURITIES AND ACCRUED INTEREST", with the resulting implications.
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As prescribed in Article 2 of Instruction No. 13/94 of this date, an advance to a depositor is an operation that falls under the concept of granted credit for all purposes. Accordingly, the respective amounts shall be included in the information on granted credit provided to the National Bank of Angola.
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This Directive shall enter into force on January 2, 1995. Luanda, December 28, 1994 BANKING SUPERVISION DIRECTORATE