Public Interventions

November 03, 2014

Governor’s speech of the National Bank of Angola, in the closing ceremony of III International Forum on Financial Inclusion

Your Excellencies,
Your Excellency Vice-Governor of the Province of Luanda,
Mr. President of ABANC
Dear Guests
Ladies and gentlemen,
 
As part of the celebrations of the 35th anniversary of the National Bank of Angola, we have been holding a series of conferences aimed at discussing issues of national interest related to the further development of the financial system.
 
The subject of financial inclusion understood as "the population's access to basic financial services, including safe and efficient payment instruments, regardless of their income and geographical location in the national territory” is certainly complex and, although constitutes the subject and the core of the financial system concerns, it is transversal to a wide range of public and private non-financial entities.

We intend to involve all the partners in the discussion of this important subject, grating the validity of the actions already developed in the country, providing the knowledge of successful experiences in other countries and, above all, broadening our understanding, with a view to launch the bases for the groundwork of a strategy of Financial Inclusion adapted to the Angolan reality.
 
The available information discloses that the access to basic financial services is still limited in our country, both in terms of the population covered and in terms of geographical distribution of the service providers.

It is estimated that approximately 13.5% of the Angolan population has a bank account despite the strong growth of the branch network in recent years increased to 914, about 54% of this network is located in Luanda.
When Analyzing the financial inclusion in our country on the side of the offer of the financial services, important indicators of accessibility reflect the same reality as in June of this year, there were only 0.49 branches and banking facilities per 10.000 inhabitants, and 0,76 ATMs per 10,000 inhabitants. At that time, the number of bank branches per 1.000 Km2 was only 0.72, while the ATM per 1.000 Km2 was 1,03.
 
In the same period, and in relation to the use of payment instruments, despite the encouraging growth that has occurred, the number of ATMs cards valid per 1.000 inhabitants was only 121.
 
The Deposits/GDP ratio was 33%, and on the side of the supply of bank credit the credit to economy / GDP ratio, which has been growing, was 20.7% at the end of the first semester of this year. However, the credit to natural persons is only 4,4% of GDP.
 
In the scope of providing microcredit services, we have four banking and one non-bank financial institutions, which offer these services in a universe of 23 licensed banks.
 
As part of the social inclusion actions that have been implemented by the Angolan Executive, the National Bank of Angola has been taking several initiatives aimed at financial inclusion, thus associating itself with the Government's efforts to reduce poverty in our country.
 
In his opening address to the Fourth Extraordinary Congress of the MPLA, His Excellency, the President of the Republic, in regard to inclusive financial solutions for poverty reduction, he recommended that, and I quote "all those who have savings, instead of saving their money at home, they should keep it in a bank, because these individual savings deposited in the commercial banks constitutes the Savings, of which a part is destined to the investment or to finance the consumption.
 
In fact, the adequate expansion of financial inclusion allows for greater mobilization of savings to support investment and broadens the access base to financial capital, thus stimulating, the formalization of the economy, job creation and the distribution of Income, in other words, the provision of financial services and products adapted to the needs of the lower income population and to those that develop micro and small businesses, including savings products, is fundamental for the development of an inclusive financial system in our country, apart from offering greater security and protection to the population resources, to stimulate the economy and to support the reduction of poverty through the creation of employment.
 
With this guidance in mind, a regulatory framework for micro-credit societies and credit cooperatives was established this year, creating conditions for the emergence of more micro-finance service providers.
 
In addition, the provision of remittance services was regulated, and regulations relating to correspondent banks are in the preparation phase.
 
The BNA started a Financial Education program and in partnership with nine commercial banks developed the "Bankita Deposit" and "Bankita Grow Savings" believing that they respond to the needs of the target segment of the market and will contribute to the increase in the funding of the banking system.
 
Banking Consumer Protection is another fundamental element for the growth of Financial Inclusion. Thus, in line with the Consumer Protection Law and Notice No. 02/2011 of 1 of June, BNA created the Conduct Supervision Department with the purpose of better assuring the rights of consumers of financial services.
 
As we can see, our efforts to increase the population's access to basic financial services so that it can benefit from the inherent benefits are still in the beginning, and we appeal all those present for an intense debate on this very important subject, so that the further development of the financial system in the country can take place in a sustained and socially inclusive way.
 
I hereby declare this Conference open.
 
 
Luanda, 19 of October of 2011.