ALGERIA: Banks Receive Compliance Training Boost from International Experts

In a move aimed at strengthening the country’s financial sector, the Banque d’Algérie (BA) has received technical assistance from METAC, a leading provider of banking and finance expertise.

Implementing a Credit Rating System for Non-Financial Corporations

The training sessions, held in June, September, January, July, October, and April, focused on implementing a credit rating system for non-financial corporations to enable banks to accept credit claims as collateral. According to BA officials, the training was designed to provide hands-on implementation tools based on country-specific calibrations of financial balance sheet ratios.

Credit Rating Scale for Algerian Non-Financial Corporations

The goal is to achieve a credit rating scale for Algerian non-financial corporations, allowing banks to better assess credit risk and make informed lending decisions. This will enable the Banque d’Algérie to strengthen its financial oversight and regulatory framework, ultimately benefiting the country’s economy.

Regulatory Framework Development for Banks and Financial Institutions

The training sessions also covered regulatory framework development for banks and financial institutions. METAC experts advised on outsourcing regulations in line with European Banking Authority guidelines. Supervisors were trained on the risks and challenges related to outsourcing arrangements to enhance their understanding, awareness, and capacity to assess these risks.

Compliance Risk Management Strategy for the Extractive Industries

In addition, METAC provided tailored advice to the Algerian General Directorate of Taxes (DGI) on designing a compliance risk management strategy for the extractive industries. The training aimed to improve EI compliance and expand it to a broader tax base.

Success of the Training Sessions

The success of the training sessions was attributed to METAC’s expertise in banking and finance, as well as its ability to adapt its approach to meet the specific needs of the Algerian market. With this knowledge and support, the Banque d’Algérie is poised to strengthen its financial oversight and regulatory framework, ultimately benefiting the country’s economy.

Source: Algeria News Agency