Instruction No. 14/2020 of August 4 on the Custody Fee Applicable to Excess Reserves of Commercial Banks Deposited at the National Bank of Angola

INSTRUCTION NO. 14/2020 of August 4
SUBJECT: FINANCIAL SYSTEM

• Custody Fee Applicable to Excess Reserves of Commercial Banks Deposited at the National Bank of Angola

In order to encourage an increase in the level of financial resource intermediation between Commercial Banks and other economic agents, with the underlying objective of stimulating economic activity; Under the combined provisions of Articles 26 and 51, both of Law No. 16/10 of July 15, the National Bank of Angola Act.

I DETERMINE:

1. Object and Scope
   This Instruction establishes the custody fee to be applied by the National Bank of Angola to the excess reserves of Commercial Banks.
2. Excess Reserves
   The excess reserves of Commercial Banks represent the portion of total bank reserves that exceeds mandatory reserves. For the purposes of this Instruction, excess reserves are divided into two levels: (i) level exempt from the custody fee and (ii) level subject to the custody fee, whereby:
   a) The level exempt from the custody fee corresponds to the value of Kz 3,000 (Three Thousand Million Kwanzas);

CONTINUATION OF INSTRUCTION NO. 14/2020 Page 2 of 2 b) The level subject to the custody fee corresponds to the balance of excess reserves net of the value established in the preceding sub-paragraph of this section.
3. Custody Fee Rate
The custody fee rate is 0.1% (zero point one percent) per day.
4. Calculation Base
The custody fee amount payable by each Commercial Bank is calculated daily on the closing daily balance of their free reserves deposited at the National Bank of Angola, minus the value referred to in sub-paragraph a) of section 2 of this Instruction.
5. Payment
The amount due by each Commercial Bank is debited from its account with the SPTR on the next business day following calculation.
6. Doubts and Omissions
Doubts and omissions arising from the interpretation and application of this Instruction are resolved by the National Bank of Angola.
7. Entry into Force
This Instruction enters into force on August 10, 2020.

PUBLISHED.
Luanda, August 4, 2020.

THE GOVERNOR
JOSÉ DE LIMA MASSANO