Regulatory Alerts2016-10-11
Circular to Banks and Financial Institutions No. 2016-06 of October 11, 2016
The Central Bank of Tunisia issued Circular No. 2016-06 to establish minimum requirements for the design, operation, and governance of internal counterparty rating systems within banks and financial institutions. The Circular mandates that these systems utilize distinct counterparty- and transaction-specific parameters, maintain a rating scale of at least seven non-default grades plus one default grade, and incorporate statistical models supplemented by expert judgment. Institutions must implement compliant rating frameworks, maintain comprehensive documentation, and submit an implementation roadmap by December 2016, with full compliance required by December 2017.
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