The fortunes of Angola’s banks are continuing to split nearly three years after commodity prices began their swift collapse. While the larger private lenders are weathering a challenging economic environment relatively well, many of their state-owned peers are being restructured and recapitalised. Meanwhile, smaller banks of all stripes are feeling the pinch from a stalling economy and a tighter regulatory landscape.
These challenges are unfolding as Angola’s banking sector braces for full Basel II capital adequacy compliance by the end of 2017. Meanwhile, with dwindling quality growth opportunities, the structure of Angola’s banking sector could change in the coming years, with consolidation a likely (though by no means straightforward) outcome.
