RESEARCH PROPOSAL

Research Proposal

Table of Contents

Background of Study3

Introduction4

Purpose of the Study6

Research Question6

Literature Review7

Economic Overview7

Current Financial System of Angola8

Role of Financial Supervision, Management and Control9

Banking Supervision for Avoidance of Financial Pitfalls10

Points for Analysis11

Methodology12

References14

Working Title of the Dissertation

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

Background of Study

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 who have exhibited great performance with respect to improved capitalization and enhanced liquidity from the time since the year 2005.

Financial Analysts perceive a warm glow over the potential 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 (Papagni, 2006, 27-54). 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 in the recent years owing to their implementation of capital and financial management practices and reforms. Profitability has also increased, with banking and net incomes rising by nearly a quarter (La-Porta et.al, 1997, 1131-50).

Recent years have also marked an increment in monthly transactions amongst various reputed banks in Angola that is certainly a new trend in progress. The sector is diversifying by leaps and bounds; shifting from the previously controlled structure under the state bank. According to banking analysts and economic forecasters, there is great [potential in Angola banks to rise in the future; although there are still lower rates of banking penetration at only 11% (relatively). The country's insurance sector is maturing well since the government submitted it to a liberalization programme in 2000, indicative of substantial growth in the upcoming era. Post-war reforms have been responsible to cause positive changes in the performance of Angola banks, along with a strong support from its financial management aspect (Marks, 2007, 1-10).

Introduction

Angola is a country characterized by great economic potential and to have suffered a long civil war that ended in 2002. The war began in 1975 after independence from Portugal, facing the People's Liberation Movement of Angola (MPLA) and National Union Total Independence of Angola (UNITA). The dissertation will be based on an analysis of the attributes of the growth of Angola Banks since the time after the year ...