Regulatory Alerts2022-03-01
Circular to Banks and Financial Institutions No. 2022-01 of March 1, 2022
The Central Bank of Tunisia issued Circular No. 2022-01 to mandate banks and financial institutions to implement a comprehensive prevention and resolution mechanism for non-performing claims, establishing minimum requirements for early warning systems, portfolio segmentation, viability assessments, and dedicated workout units. Institutions with non-performing claims exceeding 7% (or 10% including sold commitments) must develop and execute written five-year resolution strategies supported by operational plans, while lead banks for large risks over 100 million dinars must coordinate pool-wide recovery actions and submit annual governance reports. Compliance is enforced through adapted internal controls, biennial audit evaluations, and strict reporting deadlines to the central bank, with disciplinary measures applicable for non-compliance.