Luanda — Angola's Reserve Bank (BNA) intends the country's banking system to become stronger and compliant with the regulations of the Basel II Accord, with a view to meeting the challenges of the international market.

This was said Monday in Luanda by BNA vice governor, Rui Minguês.

According to the official, who was addressing the opening of the seminar on "New Basel II Accord", BNA, in its capacity as Central Bank and supervisor of the country's banking activity, is enforcing a set of regulations, aiming at the efficient functioning of the financial institutions and working in a safe environment.

He said the first step towards the safeguard of the good functioning of the financial institutions was the promulgation of the New Accounts Plan that reflects, to a great extension, the approximation to the Basel Accord II and the regulation on the capitals and needs of capital for each type of risk.

The creation of regulations permits BNA to more and more and gradually transfer to the banks the management and control of their own risks, in line with the Basel II Accord, the official also said.

Being banking one of the most internationalised activities, BNA has been seeking to approximate the Angolan regulation to the international standards, especially to the Basel I and II.

He explained that Basel I dictated the main elements of banking management, whereas Basel II started its action in the evaluation of risks on credits and on its general activity.

"The Basel II accord was signed more than four years ago. In order for an appraisal of risks in small and medium scale companies, with this new accord, there is need for a change in the methods of management with a view to adjusting or determining the risk," he also explained.

BNA deputy governor said he hopes the seminar helps the commercial banks to better understand what is behind the regulation it issued and find suggestions that can contribute to improve the central bank regulation.

The New Basel Accord on capitals like Basil II, is an international accord that sets the rules of risk management the banks are adopting, seeking to keep pace with the changes regulating authorities are enforcing.

Such regulations aim at arresting the possibility of an international bank crisis, securing to that purpose that each bank, particularly, avails itself with enough capital to carry out its activities that involve some risk.

The seminar on "New Basel II Accord" that will close on Saturday is being jointly sponsored by the Angolan Banks Association (Abanc) and the "Universidade Lusófona de Lisboa".

It comprises two parts. The first is designed for banks managing board members and the second for commercial financial technicians.

The event is tackling such topics as modelling of the banking activity under Basel II, Basel II fundamental regulations, the three pillars of banking systems stability and the fundamental role of discipline in the market.