By Peter Hsu, Rashid Bahar
The Angolan banking system now comprises 27 banks, and it is widely agreed that Angola’s banking institutions will need to go through a consolidation phase over the next few years – in particular, considering that Angolan banking institutions have a high rate of nonperforming loans (NPL) and are being required to adhere to international best practices and standards issued by the Basel Committee on banking supervision.
The first merger in the country has already occurred. In 2016, Banco Millennium Angola and Banco Privado Atlântico, the country’s fifth- and sixth-largest banks by net loans market share, got the green light to form Banco Millennium Atlântico. Angola’s retail banking sector continues to expand. Physical branch and ATM electronic payment system and automatic payment terminals (TPA) access to urban and rural areas is still growing. A more diverse choice of electronic payment solutions and channels are expected to be further developed and disseminated, giving more flexibility and efficiency to transactions and clients. A mobile payments system is planned to be launched in 2019.