The Algerian Monetary and Banking Council, under the presidency of Mohand Bourai, Governor of the Bank of Algeria, held its ordinary session on November 5, 2026. During this session, the council examined and validated three new project regulations related to prudential standards for banks and financial institutions. These projects aim to strengthen the alignment of the national regulatory framework with international standards and recommendations.
The validated projects include regulations on solvency ratios, the management of large risks and participations, and the classification and provisioning of claims and off-balance sheet commitments. These new regulations revise solvency ratios, set frameworks for concentrating large risks, and update rules for classifying and provisioning claims. The overhaul also includes specific provisions dedicated to the development of Islamic finance and the consolidation of the deposit guarantee system.
The Algerian Monetary and Banking Council's move is aimed at reinforcing the national regulatory framework's alignment with international banking supervision standards. This alignment will ensure that Algerian banks and financial institutions adhere to strict rules regarding risk coverage by net equity, in compliance with regulation 91-09. Additionally, institutions must maintain an obligatory coefficient of permanent resources, as per regulation 2004-04.
The regulations also focus on rigorously monitoring liquidity to prevent any conjunctural vulnerability, as outlined in regulation 2011-04. By implementing these new regulations, the Algerian banking system is expected to enhance its stability and resilience in the face of potential risks. Furthermore, the council's decision is set to promote a more robust and secure financial environment in Algeria.
One of the key aspects of the validated projects is the determination of the deposit guarantee premium rate. This measure is designed to strengthen the deposit guarantee system, thereby increasing confidence in the banking system. The new regulations will subject banks and financial institutions to stricter rules, ensuring that they maintain adequate capital and liquidity buffers.
The Algerian Monetary and Banking Council's decision to validate these three projects reflects its commitment to maintaining a stable and secure financial system. By aligning national regulations with international standards, the council aims to promote a favorable environment for economic growth and development. The implementation of these regulations is expected to have a positive impact on the overall stability of the Algerian banking sector.
The new regulations will come into effect soon, and banks and financial institutions will be required to comply with the updated prudential standards. The Algerian Monetary and Banking Council will continue to monitor the implementation of these regulations and make adjustments as necessary to ensure the stability and soundness of the financial system.
Key points
- The Algerian Monetary and Banking Council has validated three new projects aimed at aligning the national banking system with international standards.
- The new regulations focus on solvency ratios, the management of large risks, and the classification and provisioning of claims.
- The implementation of these regulations is expected to enhance the stability and resilience of the Algerian banking system.
