Notice No. 06/2011 of July 13

NOTICE NO. 06/2011

of July 13

Whereas it is necessary to adjust the regulations regarding the fixed asset limit for financial institutions established by Notice No. 07/2007 of September 12;

In accordance with the combined provisions of items d) and e) of Article 21 of Law No. 16/10, dated July 15 (Bank of Angola Law) and Article 77 of Law No. 13/05, dated September 30 (Financial Institutions Law);

In the exercise of the authority conferred upon me by Article 51 of the Bank of Angola Law;

I HEREBY DETERMINE:

Article 1.

(Subject Matter)

This Notice regulates the fixed asset limit for financial institutions under the supervision of the Bank of Angola.

Article 2.

(Acquisition of Real Estate)

Financial institutions may not acquire real estate that is not indispensable to their premises and operations or to the pursuit of their corporate purpose.

Article 3.

(Fixed Assets)

1. The total resources invested in fixed assets, net of depreciation and amortization, and after deducting financial participations, may not exceed 100% (One hundred percent) of the value of Regulatory Own Funds (ROF).

2. The limit established in this article must be observed by financial institutions, based on individual and consolidated financial statements.

Article 4.

(Restrictions for Non-Compliance)

A financial institution or group that exceeds its respective fixed asset limit shall be subject to the following restrictions, without prejudice to other applicable penalties:

a) Prohibition on opening new branches; b) Other restrictions, as determined by the Bank of Angola.

Article 5.

(Regularization Plan)

1. If non-compliance occurs regarding the maintenance of Regulatory Own Funds (ROF) to cover fixed assets held by the institution or group, the Bank of Angola shall convene the entity's legal representatives for clarification regarding the measures to be adopted to regularize the situation.
2. Within a maximum period of 30 (thirty) days, the financial institution must submit to the Bank of Angola the regularization plan, along with its respective execution schedule, which may not exceed 6 (six) months.

Article 6.

(Inclusion or Exclusion of Permanent Investments)

1. The Bank of Angola may include in the fixed asset limit other applications characterized as permanent in nature.

CONTINUATION OF NOTICE NO. 06/2011

2. The Bank of Angola may exclude from the fixed asset limit applications characterized as exceptional in nature.

Article 7.

(Sanctions)

The financial institution or group is subject to the sanctions provided for in the Financial Institutions Law in case of non-compliance with the required fixed asset limit and failure to meet the requirements established in this Notice.

Article 8.

(Repealing Provision)

All regulations contrary to this Notice are hereby repealed, specifically Notice No. 07/2007 of September 12.

Article 9.

(Entry into Force)

This Notice enters into force immediately.

PUBLISHED:

Luanda, July 13, 2011

THE GOVERNOR

JOSÉ DE LIMA MASSANO