Notice No. 02-2018 of 9 March

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NOTICE NO. 02/2018
SUBJECT: FINANCIAL SYSTEM

• Adjustment of the Minimum Share Capital and Regulatory Own Funds of Banking Financial Institutions
  Considering the need to adjust the minimum value of share capital and regulatory own funds of Banking Financial Institutions subject to the supervision of the Banco Nacional de Angola to the current macroeconomic and financial context, considering their evolution since the publication of Notice No. 14/2013 of 2 December; Pursuant to the combined provisions of paragraphs d) and f) of paragraph 1 of Article 21, and paragraph 1 of Article 51, both of Law No. 16/10 of 15 July, the Law of the Banco Nacional de Angola, combined with the provisions of paragraph 1 of Article 16 of Law No. 12/2015 of 17 June, the Framework Law of Financial Institutions. HEREBY DETERMINE:
  Article 1.º
  (Subject Matter)
  This Notice establishes the minimum share capital and regulatory own funds (ROF).
  ARTICLE 2.º
  (Scope)

1. This Notice applies to Banking Financial Institutions under the supervision of the Banco Nacional de Angola, in accordance with Law No. 12/2015 of 17 June, the Framework Law of Financial Institutions.

CONTINUATION OF NOTICE NO. 02/2018 Page 2 of 3
Article 3.º
(Share Capital and Regulatory Own Funds)
1. The minimum value of fully paid-up share capital in national currency is Kz 7.500.000.000,00 (Seven billion five hundred million Kwanzas).
2. Compliance with the established minimum share capital, as well as Regulatory Own Funds (ROF) and the Regulatory Solvency Ratio (RSR) established in Notice No. 2/2016 of 15 July, is an indispensable condition for the operation of banking financial institutions authorized by the Banco Nacional de Angola.
Article 4.º
(Increase of Share Capital)
1. Banking Financial Institutions may increase share capital through one or both of the following options:
a) Issuance and subscription of new shares; b) Capitalization of legal reserves, free reserves, or current year results, provided they are audited.
2. Banking Financial Institutions that are unable to meet the minimum share capital requirements through the provisions of the preceding paragraph must consider other alternatives, including merger, or the transfer of their activity to one or more Banking Financial Institutions authorized to carry out the relevant activity.
Article 5.º
(Transitional Provision)
Banking Financial Institutions in operation, whose fully paid-up share capital or regulatory own funds are below the minimums established in this Notice, must:
a) Adjust them by 31 December 2018; b) Submit to the Banco Nacional de Angola, within 120 (one hundred and twenty) days after the publication of this Notice, a detailed action plan describing the measures they intend to implement to achieve compliance with this Notice.

CONTINUATION OF NOTICE NO. 02/2018 Page 3 of 3
Article 6.º
(Offences)
Non-compliance with the provisions of this Notice constitutes an offence punishable under Law No. 12/15 of 17 June, the Framework Law of Financial Institutions.
Article 7.º
(Doubts and Omissions)
Doubts and omissions arising from the interpretation and application of this Notice shall be clarified by the Banco Nacional de Angola.
Article 8.º
(Repealing Provision)
Notice No. 14/2013 of 2 December and Notice No. 04/07 of 12 September are hereby repealed.
Article 9.º
(Entry into Force)
This Notice enters into force on the date of its publication.
PUBLISH.
Luanda, 21 February 2018.
THE GOVERNOR
JOSÉ DE LIMA MASSANO