Central Bank of Tunisia Issues New Circular on Risk Management and Provisioning
The Central Bank of Tunisia published a new circular on January 29, 2025, addressed to banks and financial institutions, regarding risk management, coverage, and monitoring of commitments. This circular replaces Annex III of Circular No. 91-24, which has been in effect since 1991, with a new version included in Annex 1. The revision aims to strengthen the risk management framework within financial institutions in response to regulatory and economic developments.
Among the key decisions are the obligation for banks and financial institutions to declare to the Central Bank the elements determining the collective provision, in accordance with the model specified in Annex 2 of the circular. This measure aims to ensure greater transparency and more rigorous monitoring of provisions for risks, with the goal of reinforcing the stability of the Tunisian banking system.
The circular comes into effect immediately upon publication and applies to the 2024 exercise and subsequent exercises. The Governor of the Central Bank of Tunisia, Fethi Zouhaier Nouri, highlighted the importance of this revision in improving governance and risk management in the financial sector, in line with the objectives of compliance and transparency set by current legislation.
