Central Bank of Tunisia Issues Circular on Prudential and Regulatory Reforms
The Central Bank of Tunisia (BCT) has published a new circular (No. 2025-08) urging banks and financial institutions to implement, within a three-month deadline, a strategic and operational plan for profound prudential and normative reforms. These measures aim to strengthen the solidity of the banking system in Tunisia through new requirements for own funds, risk coverage, and alignment with the International Financial Reporting Standard (IFRS) 9.
This circular, effective since its publication, concerns all banks and financial institutions, except payment institutions. It marks a new step in the modernization of the national banking sector by repealing the 2020 circular dedicated to the adoption of IFRS standards.
Technical but Structural Reforms
Among the key projects imposed by the BCT, institutions will have to:
- Establish new own funds adequacy standards
- Update rules for classifying and covering exposures
- Implement a guide for applying IFRS 9 standard on expected credit loss) ECL calculation
The BCT requires the creation of an internal steering committee in each institution, responsible for ensuring compliance with the set calendar, and regularly reporting to the audit and risk committees.
Organizational and Technological Effort
The reform implies a revamp of the information system, internal control device, and data management. Institutions will have to appoint a Chief Data Officer and ensure the quality, security, traceability, and accessibility of data. The goal is to allow reliable and automated calculations, limiting manual error risks in critical operations.
The strategic plan, required by the BCT, must take into account the size, risk profile, and complexity of each institution. It must also integrate a training program for all concerned actors, including board members.
