Banco Comercial e de Investimentos (BCI), Standard Bank and Millennium bim are the three domestic credit institutions with the greatest systemic relevance in Mozambique, according to an assessment by the Bank of Mozambique (BdM) released last Thursday (24).

According to the BoM document, the list of credit institutions considered to be of Domestic Systemic Importance (D-SIB) is based on an average score obtained from three indicators with different weights: size, weighted 50%; interconnectedness, weighted 25%; and substitutability, also weighted 25%. In this sense, "institutions that reach more than 130 points are classified as D-SIB, between 65 and 130 points they are considered almost D-SIB, and below 65 points they are considered not systemically important".

In the assessment for 2024, BCI leads the ranking with 230 points, followed by Standard Bank with 176 points and Millennium bim with 175 points. "These three institutions have therefore been classified as D-SIBs and will have to meet additional capital requirements under current regulations. BCI is included in Tier 2, which implies the need to maintain +3.0% of Tier 1 and Tier 2 capital. Standard Bank and Millennium bim are in Tier 1, which requires +2.0% of additional capital", reads the publication to which the MZNews had access to.

According to the classification, Absa, with 115 points, and Moza Banco, with 75 points, remain in the category of Almost D-SIBs, and must comply with enhanced prudential requirements, but lower than those of the banks in the main group.

In addition, the BoM notes that in relation to the previous year, Standard Bank and Millennium bim swapped positions, as a result of Standard Bank obtaining a higher score in 2024.

The list includes another 28 domestic credit institutions that the BoM considers to be of no systemic importance.

The law requires the central bank to publish the list of credit institutions classified as 'D-SIB' or 'almost D-SIB' by April 30 of each year, based on the data reported on December 31 of the previous year.

(Photo DR)