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Finance
Overview
Prior to independence there were eight banks oper-
ating in Angola. Upon its independence in 1975, the
banking sector became a state monopoly operated
by the central bank, which simultaneously executed
monetary policy and acted as a commercial bank.
In 1976, Banco Popular de Angola (BPA) was estab-
lished as a department of the central bank with the
exclusive purpose of capturing personal savings.
From 1991, the promulgation of new banking indus-
try laws made way for additional government-owned
banks to be established.
In 1992, private banks were allowed to enter the
market. The first Bank was Banco Totta & Açores,
Banco de Fomento e Exterior and Banco Português
do Atlantico, all three of Portuguese origin.
From 1997, BNA ceased to operate as a commercial
bank, restricting its activities from there on to those
of a traditional central bank.
Recent approvals of new laws and amendments of
existing banking legislation have had a significant
impact in revolutionizing the banking sector, which
has become one of the most dynamic of the Angolan
economy.
As of December 2010, BNA had registered 23 bank-
ing institutions, namely:
Banco de Poupança e Crédito (BPC)
Banco de Comércio e Indústria (BCI)
Banco de Desenvolvimento de Angola (BDA)
Banco Africano de Investimentos (BAI)
Banco Angolano de Negócios e Comércio (BANC)
Banco de Fomento Angola (BFA)
Banco Millennuim Angola (BMA)
Banco Caixa Geral Totta de Angola (BCGTA)
Banco de Comércio Angolano (BCA)
Banco Bic (BIC)
Banco Keve (BRK)
Banco Privado Atlântico (BPA)
Banco Valor, S.A (BV)
Banco Espírito Santo Angola (BESA)
Banco Comercial do Huambo (BCH)
Banco Quantum Capital (BQC)
Banco Bai Micro-Finanças (BMF)
Banco Sol (Bsol)
Banco para a Promoção e Desenvolvimento (BPD)
Banco de Negócios Internacional (BNI)
Banco VTB África (VTB)
Banco Finibanco Angola (FNB)
Banco Standard Bank de Angola (SBA)
According to the central bank, as at December 2010
there were about 1,175 ATMs (Automatic Teller Ma-
chines) operating throughout the country and hun-
dreds of bank branches operating countrywide.
The banking sector is dynamic but highly concen-
trated with five major banks collectively
accounting for 85,4% of deposits and 83,9% of
loans. The penetration rate remains low at only 8%
of the population.
In September 2010 the total volume activity of the
banking industry in Angola was estimated at AOA 2,8
billion in deposits (AOA 2,4 billion in 2009) and AOA
2,4 billion in credit (AOA 2,2 billion in 2009). Credit
issued represented in November 2010 66% of total
deposits against 56% in 2009. When compared to
the 22% it represented in 2002, this ratio reflects the
dynamic nature of this growing industry.
Although the local currency is the Kwanza, the high
level of dollarization of the economy is reflected in
the structure of deposits. Deposits in foreign cur-
rency, USD in particular, have generally outweighed
deposits in local currency, despite efforts to promote
the Kwanza. As of September 2010, of the total de-
posits in the banking system, 50% of deposits were
in foreign currency.
Total credit available was estimated at AOA 2,4 bil-
lion of which 43% represented credit in local cur-
rency.
Of the total amount of credit available, 38% was
granted to the Angolan State and Public Companies.
The range of services offered by the banking sec-
tor in Angola has improved fairly. The main source
of revenue is foreign exchange services and interest
income.
Since 2008, there has been a drop of the reference
rate, which led to an excess liquidity and to the in-
crease in credit.
The fact that treasury bills and central bank bonds of-
fer higher returns than the interest charged by banks
on loans leads commercial banks to invest in mon-
etary instruments rather than expanding the availa-
bility of credit. Other factors negatively impacting on
the application for loans by small enterprises include
the demand for collateral, the issue of property rights
and the absence of an effective judicial system.
In terms of risk exposure, changes in exchange rates