The National Bank of Angola ordered Banco Económico SA and state-owned Banco de Poupança e Crédito SA to boost capital levels by the end of June after an asset quality review found that the lenders were marginally below the minimum capital requirement, Bloomberg News reported, citing a statement on the central bank's website.
The central bank's review, which looked into the asset quality of 13 local banks and was based on data available at the end of 2018, showed that some lenders have to reduce "very relevant" levels of loan exposure to shareholders, according to the report. It also found that most banks must improve their credit-risk procedures.
Banco Economico said it will comply with the deadline following the central bank's order, the news agency noted.
Meanwhile, Jornal de Angola previously reported that Banco Poupanca e Credito was planning legal procedures to recover nonperforming loans.