DISSERTATION

The Role of Financial Management in the Attained Growth of Angola Banks since 2005



ACKNOWLEDGEMENT

I would first like to express my gratitude for my research coordinator, colleagues, and peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full name here], declare that the following dissertation/thesis and its entire content has been an individual, unaided effort and have not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

Signature:

Dated:

Table of Contents

ACKNOWLEDGEMENT2

DECLARATION3

CHAPTER 1: INTRODUCTION5

Background of Study5

Introduction7

Purpose of the Study9

Aims and Objectives of Research9

Research Question10

Ethical Considerations10

CHAPTER 2: LITERATURE REVIEW14

Economic Overview of Angola14

Current Financial System of Angola16

Key Areas of Growth since 200522

Significance of Financial Management25

Role of Financial Supervision, Management and Control29

Banking Supervision for Avoidance of Financial Pitfalls30

Bank Management and Bank Financial Management31

Essence of Financial Management for a sound Economy35

CHAPTER 3: METHODOLOGY38

Research Design39

Descriptive Research40

Exploratory Research41

Research Approach42

A Quantitative Approach42

The Qualitative Approach44

Pragmatic or Mixed Methods Approach45

Research Strategy45

Research Philosophy46

CHAPTER 4: FINDINGS AND DISCUSSION47

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS57

REFERENCES61

CHAPTER 1: INTRODUCTION

Background of Study

Located in the western region of Southern Africa, the parallels between 5 and 18 South latitude, Angola's territory includes part of the river systems of the largest river in West Africa, the Congo or Zaire (4000 km), and the largest river in East Africa the Zambezi (2680 km). Its area is over two times greater than that of France and Great Britain, and almost twelve times greater than that of Portugal. It is bordered to the north and northeast, with the Democratic Republic of Congo east with Zambia with Namibia and South, being bathed by the Atlantic Ocean to the west (Ang, 2008, pp. 38-53).

The sustained economic growth of Angola, the gradual increase of the average life expectancy and greater literacy levels have been shaping the country's demography; contributing to changes in client behavior, not only in more consistent saving habits, but also into an increasing demand for new products, transactions and channels. Africa's growth and stability in an otherwise volatile world is indeed commendable (Temple, 1998, 309-47). Analysts see that the African economic and financial sector holds much promise despite the volatilities due to the widespread financial turmoil and uncertainties. The same holds true for Angola Banks which have exhibited great performance with respect to improved capitalization and enhanced liquidity from the time since the year 2005.

Financial Analysts perceive a successful future of Angola's financial sector. This, according to the trends being analyzed, is duly attributed to the financial management undertaken by the banks in the wake of changing banking policies and reforms. The asset quality of the Angola banks along with outlooks on its profits has been improved since 2005 (Angola finance, 2008, n.d). This has been realized in the lieu of strong financial management practices that were designed with a positive and realistic approach towards working for the banks' sustainability. Thus, it can be said that Angola's banks are witnessing a strong financial repute and stature ...