Regulatory Alerts2019-12-26
Directive No. 13/DSB/DRO/2019: Guide on AQA Methodology Implementation Recommendations for the 2019 Fiscal Year
The National Bank of Angola’s Banking Supervision and Financial System Regulation Departments issued Directive No. 13/DSB/DRO/2019 to standardize Asset Quality Assessment (AQA) methodologies for banking financial institutions closing their 2019 fiscal year accounts. The directive mandates specific Probability of Default (PD) and Loss Given Default (LGD) assumptions for cash, placements, securities, and credit portfolios under IFRS 9, while prescribing scenario weights (base 70%, favorable 10%, adverse 20%) and detailed discount rates for real estate collateral based on valuation age and construction completion. Non-compliance constitutes a punishable offense under the Basic Law on Financial Institutions, with the National Bank of Angola retaining authority to resolve interpretative doubts.