Regulatory Alerts2022-03-04
Circular to Banks and Financial Institutions No. 2022-02 of March 4, 2022
The Central Bank of Tunisia issued Circular No. 2022-02 to mandate banks and financial institutions to establish collective provisions against latent risks on current (class 0) and specifically monitored (class 1) commitments by charging against results. The circular replaces Article 10 bis of Circular No. 91-24 and requires institutions to apply a standardized methodology that calculates average migration rates, applies sector-specific adjustment and provisioning multipliers, and ensures annual review and auditor validation. Effective from publication for the 2021 financial year onward, the framework standardizes risk coverage calculations while allowing financial institutions to request lower rates based on a reasoned report and prior regulatory approval.