The central bank of Angola is the national bank of Angola (BNA). On January 20, 1976, it was founded after Angola’s independence from Portugal. The BNA is in charge of carrying out monetary policy, maintaining Angola’s foreign currency reserves, overseeing the banking industry, and making sure the country’s financial system is stable.
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History and structure
On January 20, 1976, the Angolan national bank was established under Law No. 1/76. Its major objectives were to oversee the growth and upkeep of Angola’s banking system as well as to control the nation’s monetary policies. A governor and two vice governors make up the board of directors that oversees the organization. The president of Angola appoints the governor, while the governor appoints the vice governors. The board of directors is in charge of establishing the rules and regulations that drive the national bank’s operations.
Obligations and duties
The Angolan national bank performs a variety of duties, including the following:
Carrying out monetary policy
The BNA’s implementation of monetary policy in Angola is one of its main duties. Monetary policy is the bank’s operations to control the flow of credit and money into the economy to create stable prices and long-term economic growth. The organization uses a variety of instruments to carry out monetary policy, including open market operations, managing the money supply, and establishing interest rates.
Governing the banking industry
The BNA is in charge of overseeing the banking industry in Angola. To guarantee they function securely and reliably, this involves monitoring and controlling banks, insurance firms, and other financial organizations. To safeguard the stability of the banking system, the organization establishes and enforces prudential laws, including minimum capital standards and guidelines for risk management. Foreign exchange bureaus, which handle currency exchange in Angola, are likewise licensed by and under the BNA’s supervision.
Taking care of Angola’s foreign currency reserves
It is also in charge of overseeing the nation’s foreign currency reserves. To enable international commerce and preserve the stability of the native currency, a central bank must store foreign currencies and other assets in its foreign exchange reserves. By a variety of policies and operations, including purchasing and selling foreign currencies and determining exchange rates, the BNA controls Angola’s foreign currency reserves.
Ensuring the financial system’s stability
The BNA’s role to maintain the stability of the Angolan financial system is another important duty. This entails keeping an eye on and evaluating system risks, including credit and liquidity issues, and taking steps to reduce such risks. The organization closely coordinates efforts to safeguard financial stability with other governmental bodies including the ministry of finance and the national bank regulatory body.
Encouragement of financial inclusion
The BNA is also in charge of encouraging financial inclusion in Angola. Financial inclusion is the accessibility and availability of financial services to both people and enterprises, especially those who are underserved by or excluded from the traditional financial system. Through funding microfinance organizations, promoting digital financial services, and offering financial literacy and education programs, the BNA works to advance financial inclusion.
Services provided by the organization
The BNA offers a variety of services to aid in the expansion and development of enterprises in Angola in addition to its basic duties. They consist of:
Investment promotion
This service makes Angola more appealing as a location for international investors, easing their investment initiatives there. The BNA offers details on the legal and regulatory environment for investment as well as information on Angola’s investment prospects. The national bank also collaborates closely with other governmental organizations to help and support investors at every stage of the investment process.
Permits and licensing
In Angola, financial institutions are subject to license and regulation by the BNA. Banks, insurance providers, and other financial institutions fall under this category. Financial institutions that satisfy the relevant criteria, such as capital adequacy and solvency, are granted licenses and permits by the national bank. In addition, the organization makes sure that these institutions follow all relevant rules and regulations, and it takes enforcement action against those that don’t.
Business assistance programs
For entrepreneurs and small firms in Angola, the BNA offers a variety of business assistance services. These services include access to financing, technological support, and financial education and training. To provide these services, the organization collaborates with both public and private sector entities. The objective is to support the expansion and development of Angola’s small enterprises, which are a key driver of the country’s economic growth.
Recent developments
The modernization and promotion of financial inclusion in Angola have advanced significantly in recent years thanks to the national bank. Among the significant developments are:
The implementation of a new payment system
A new payment system known as the Angola interbank payment system was introduced by the national bank in 2018. (sip). The sip is intended to make electronic payments for people and companies simpler and quicker.
The promotion of financial inclusion
The organization has taken some actions to encourage financial inclusion in Angola. This includes starting a program for financial education and collaborating with banks to provide access to fundamental financial services.
The development of a new regulatory framework
To improve the regulatory environment and increase the stability of the financial system, the organization unveiled a new regulatory framework for the banking industry in 2018.
