Regulatory Alerts2024-01-19
Circular to Banks and Financial Institutions No. 2024-01 of January 19, 2024
The Central Bank of Tunisia issued Circular No. 2024-01 to repeal and replace Annex III of Circular No. 91-24, establishing a standardized methodology for calculating collective provisions on classified commitments 0 and 1. The directive mandates banks and financial institutions to group target exposures by customer segment and economic sector, calculate historical average migration rates over a seven-year period (excluding 2020), and apply prescribed mark-up and standard provisioning rates to determine final provision amounts. Financial institutions may request prior approval from the Central Bank to apply lower mark-up or provisioning rates based on a justified report, with all calculations subject to annual recalculation and review at each financial statement closing date.