Angola: Financial Sector Assessment Program-Financial System Stability Assessment

International Monetary Fund

No 2026/096, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper on Angola highlights the Financial Sector Assessment Program report. Angola’s oil-dependent economy showed signs of recovery in 2024, although sovereign and private financing conditions remained constrained. The country’s bank-dominated financial sector is relatively small and generally well-capitalized, but several vulnerabilities persist, including high levels of nonperforming loans, strong links between banks and sovereign debt, and exposure to foreign exchange and climate-related risks. Strengthening systemic risk analysis and macroprudential policymaking is essential, particularly through improvements in data quality, institutional coordination, policy tools, stress testing frameworks, and public communication. Regulatory and supervisory frameworks for banks also require significant reforms to support a more risk-based and forward-looking supervisory approach, including greater supervisory capacity and improved data systems. In addition, components of the financial safety net and crisis management framework need enhancement, such as bank resolution mechanisms and emergency liquidity assistance arrangements. Addressing weaknesses in the Combating the Financing of Terrorism framework is equally important to support Angola’s removal from the Financial Action Task Force grey list and enhance financial stability.

Keywords: liquidity indicator; capital market; systemwide liquidity analysis; problem bank; Fsap finding; Anti-money laundering and combating the financing of terrorism (AML/CFT); Financial sector stability; Financial Sector Assessment Program; Financial sector; Global; Southern Africa; Middle East; Africa (search for similar items in EconPapers)
Pages: 100
Date: 2026-05-08
New Economics Papers: this item is included in nep-fdg
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