Banks in Algeria: draft prudential regulations validated by the CMB (communique)
According to Radio Algerienne, the Monetary and Banking Council validated draft regulations on solvency, large exposures and loan provisioning.
In short
According to Radio Algerienne, the Monetary and Banking Council, a body of the Bank of Algeria, held an ordinary session on prudential standards for banks and financial institutions. It validated draft regulations on solvency ratios, large exposures and equity holdings, and the classification and provisioning of receivables. It also worked on the rate of the bank deposit guarantee premium.
Key points
- Ordinary session of the Monetary and Banking Council, according to Radio Algerienne.
- Draft regulation on solvency ratios validated.
- Draft regulation on large exposures and equity holdings validated.
- Draft regulation on classification and provisioning of receivables and off-balance-sheet commitments validated.
- Work on setting the rate of the bank deposit guarantee premium.
What the communique says
According to Radio Algerienne, a communique of the Monetary and Banking Council says the session was devoted to draft regulations on prudential standards for banks and financial institutions.
The communique refers to alignment with international standards and recommendations, taking into account the specific features of banking operations under Islamic finance.
Drafts validated and topic reviewed
The Council reviewed and validated the following drafts, according to Radio Algerienne:
- regulation on solvency ratios applicable to banks and financial institutions
- regulation on large exposures and equity holdings
- regulation on the classification and provisioning of receivables and off-balance-sheet commitments
- The work also covered setting the rate of the bank deposit guarantee premium.
Who is concerned
The drafts concern banks and financial institutions, according to the dispatch.
Frequently asked questions
Which draft regulations did the Monetary and Banking Council validate?
According to Radio Algerienne, it validated drafts on solvency ratios, on large exposures and equity holdings, and on the classification and provisioning of receivables and off-balance-sheet commitments.
Who is concerned by these draft regulations?
According to the dispatch, they concern prudential standards for banks and financial institutions.
Was the bank deposit guarantee premium rate set?
According to Radio Algerienne, the Council's work covered setting this rate. The dispatch gives no figure.