Capital adequacy ratio in Angola's banking sector 2019-2021
In June 2021, the capital adequacy ratio (CAR) of commercial banks in Angola decreased to around 22.9 percent, down from 27.6 percent in the preceding year, which indicated a deterioration in the banking sector's ability to withstand a financial downturn. The CAR measures the ratio between the volume of capital and the risk-weighted credit exposures. The higher the ratio, the more likely it is for the banks to handle losses before being at risk of insolvency.