Angola: Central bank governor wants banks to list on stock exchange

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Angola: Central bank governor wants banks to list on stock exchange

9:38 CAT | 02 Aug 2021

The governor of the Bank of Angola (BNA) on Friday encouraged national banks to enter the capital market, considering that this is also a way to boost the transparency of financial institutions.

Speaking at the closing ceremony of the 11th Banking Forum, organised by newspaper Expansão, José de Lima Massano encouraged financial institutions, “to consider listing their shares on the Angolan Stock Exchange” in order to boost scrutiny and transparency,” considering the obligations to provide information to the market in a timely manner in compliance with the requirements of the schedule set out by the stock exchanges.

As well as this, he went on, entry to the regulated capital market can also make it easier to strengthen capital structures by accessing funding via the issue of shares to new or existing shareholders or bonds to institutional or private investors.

Other advantages are liquidity for shareholders, facilitating the sale of shares and providing the widening of the investor base, giving institutions greater viability and increasing their credibility with suppliers, customers and international banks

“Attracts foreign investment, enhances savings and orientation towards financial assets in national currency,” said Lima Massano.

He added that the BNA had been working to strengthen its regulatory framework and was implementing the methodology for analysis and assessment of the supervisor, developed by the European supervisory authority, known by the acronym SREP, which is a set of procedures to ensure that each financial institution has strategies, processes, capital and liquidity appropriate to the risks to which it is or may be exposed.

“The implementation of this methodology will significantly change the approach to prudential supervision of national financial institutions and make the process more structured, consistent, robust, risk-based and forward-looking,” said Lima Massano.

The BNA also has an ongoing project to adopt Suptech (Supervisory Technoloy) to achieve efficiency gains in prudential supervision processes through real-time monitoring of micro and macro-prudential risks inherent in financial institutions that will be extended to behavioural supervision, Central Credit Risk and to the Deposit Guarantee Fund.

Source: Lusa