Instruction No. 5/92 on the Opening of Financial Institution Branches and Dependencies

INSTRUCTION NO. 5/92
SUBJECT: FINANCIAL SYSTEM

• Organization
• Opening of Branches
  Whereas the opening of branches or dependencies of financial institutions established in the country requires prior authorization from the National Bank of Angola, as provided for in paragraph 1 of Article 11 of Law No. 5/91 of April 20, and it is necessary to regulate this matter, the National Bank of Angola; DETERMINES:
  Article 1 - By branches or dependencies of a financial institution is understood the establishment lacking legal personality that, belonging to a financial institution, directly carries out operations inherent to its activity.
  Article 2 - The opening of branches or dependencies of financial institutions depends on authorization from the National Bank of Angola.
  Article 3 - The authorization request shall be submitted via an application addressed to the Governor of the National Bank of Angola, accompanied by the following documents:
  a) - the indication of the premises and a brief enumeration, and respective volume of the operations it intends to carry out over a one-year horizon; b) - the project for installation costs, fixed costs, and variable costs of the establishment; c) - the latest semi-annual balance sheet of the requesting institution.
  Article 4 - 1. In evaluating the requests, the following shall be taken into account:
  a) - the financial capacity of the requesting entity; b) - the interest to the local economy; c) - the number and nature of credit institutions already established in the market.

2. For the requesting entity to be recognized as having financial capacity for this purpose, its fixed assets must be less than 70% of its equity.
3. In evaluating the interest to the local economy, special consideration shall be given to the economic situation of the region, the number of credit institutions operating there, and the ratio between deposit portfolios and the volume of credit extended by them.
   Article 5 - The authorization referred to in Article 2 shall lapse if the credit institution renounces it or if the branches or dependencies do not commence operations within 6 months from the date of notification.

Article 6 - The National Bank of Angola may condition the authorization for the installation of the requested Branch or Dependency to the installation of another counter of the requesting institution in a zone or locality that currently lacks banking coverage.
Article 7 - This notice shall enter into force immediately.
PUBLISH
LUANDA, ON August 12, 1992
THE GOVERNOR
SEBASTIÃO BASTOS LAVRADOR