Financial Supervision and Regulation - Fiscal Year 2027
Algeria
Developing Regulatory Framework for Dealing with Domestic Systemically Important Banks (May 10-14)
METAC supported the Bank of Algeria in developing a regulatory framework for the identification of Domestic Systemically Important Banks and the application of additional prudential requirements to these banks. The mission forms part of ongoing efforts to strengthen risk-based supervision and align the Algerian regulatory framework with Basel Committee standards under Basel III. It resulted in (i) a draft regulation for identifying systemically important institutions and (ii) a complementary instruction outlining a transparent and methodological approach to calculating systemic importance scores for Algerian banks.
Building Supervisory Capacity for Payment Services Providers Oversight (June 7-11)
The Bank of Algeria has recently established the regulatory framework for licensing and operating payment service providers (PSPs). With new PSPs under licensing, the BA sought METAC’s technical assistance to enhance the supervisory framework for PSPs. The current mission was the first mission for this multi-phased project. It aimed at strengthening supervisory capacity by presenting PSP business models, associated risks, and supervisory approaches, while laying the foundations for the development of supervisory methodologies and tools.
Egypt
Enhancing Cyber Risk Supervisory Framework Peer-To-Peer Engagement (June 15-19)
The IMF Monetary and Capital Markets Department and METAC conducted a peer-learning workshop for supervisory staff from the Central Bank of Morocco and the Central Bank of Egypt. The workshop covered the cyber threat landscape, cyber risk management, governance, regulation, supervisory practices, third-party risk management, incident reporting, information sharing, operational resilience, and testing frameworks. It also included a session on recent developments in frontier AI models and their cybersecurity implications. Both central bank teams presented their cyber risk regulatory and supervisory frameworks, followed by exchanges that significantly enriched peer learning.
Iraq
Working on Licensing and Digital Banking (June 14-25)
The Central Bank of Iraq (CBI) strengthened its ability to apply risk-based licensing and supervise digital banks more effectively, supported by prioritized recommendations and an implementation roadmap aimed at promoting a more consistent, forward-looking, and robust regulatory framework in line with Iraq’s broader banking sector reform agenda. METAC mission helped strengthen the CBI’s regulatory and supervisory framework for both banking licensing and digital banks. Through a review of the Banking Licensing Guide, related regulations, and the regulatory treatment of digital banks, the mission identified key gaps, inconsistencies, and areas requiring clarification. A workshop enhanced the capacity of CBI supervisors by deepening their understanding of risk-based licensing principles, digital banking models, and the supervision of operational, ICT, cyber, outsourcing, and other emerging risks. The mission also provided practical guidance on monitoring tools, risk indicators, reporting practices, and the supervision of digital bank onboarding and conversion processes.
Jordan
Developing Risk Management Regulation (July 26-30)
The mission reviewed and enhanced a first draft regulation prepared by the Central Bank of Jordan, which sets out supervisory expectations for banks’ management of key risk areas. This work aims to help address one of the recommendations of the Financial System Stability Assessment (FSAP, April 2023), which noted that regulatory requirements and supervisory expectations for risk management in Jordan are dispersed across several regulations and the Banking Law, and that enforceable regulations for several specific risks are needed.
Lebanon
Workshop on Supervisory Review Process (June 8-12)
A five-day field-based workshop strengthened the capacity of Banking Control Commission of Lebanon (BCCL) supervisors to develop and operationalize a risk-based Supervisory Review Process (SRP/SREP) aligned with Basel Framework Pillar 2 principles and international best practices. The workshop focused on strengthening supervisors’ understanding of risk-based supervision and the use of supervisory judgment in translating risk assessments into supervisory actions. Practical discussions and exercises explored how selected SRP/SREP tools and methodologies could be adapted to the Lebanese supervisory environment and support the future development of a more structured risk-based supervisory framework.
Libya
Enhancement of Shariah and Corporate Governance Supervision (May 17-21)
METAC supported the Central Bank of Libya (CBL) in strengthening supervisory approaches to corporate governance and Sharīʿah governance, while identifying key areas for further development. It focused on (i) reviewing the existing regulatory and supervisory framework, (ii) benchmarking against international standards (primarily IFSB 30 and 31), and (iii) developing a practical supervisory evaluation matrix. The mission was delivered through a structured five-day program combining presentations, gap analysis exercises, and hands-on development of supervisory tools. These activities contributed to a shared understanding among CBL supervisors of international good practices and supported agreement on the need to transition from descriptive compliance-based reviews to a more structured, forward-looking, risk-based supervisory approach.
Risk‑Based Banking Supervision/Development of Risk Matrix (July 26-30)
METAC assisted the Central Bank of Libya (CBL) in developing and operationalizing a risk assessment framework and supervisory risk matrix as a key component of its transition toward a more forward-looking risk-based supervision (RBS) approach. The mission supported the CBL in strengthening supervisory methodologies by introducing practical approaches for identifying, assessing, and rating risks at both the individual bank and sectoral levels, while enhancing the linkages between risk assessment, supervisory planning, and supervisory actions.
Syria
Workshop On SRP: Supervisory Tools and Techniques (May 10-14)
With METAC support, supervisors at the Central Bank of Syria (CBS) enhanced their understanding of risk-based supervisory approaches and gained practical experience in assessing inherent risks, risk management practices, and key risk areas, including credit, liquidity, operational, and governance risks. The mission strengthened participants’ knowledge of the Supervisory Review Process (SRP) and related supervisory tools and techniques in line with the Basel Core Principles and Basel Pillar 2 framework. It also achieved initial alignment with the authorities on the conceptual design of an SRP implementation roadmap. At the same time, the mission identified significant gaps in supervisory methodologies, regulatory requirements, and data and IT infrastructure that need to be addressed to support the transition from compliance-based to risk-based supervision. Recommendations were provided to strengthen supervisory frameworks, improve data availability and reporting, develop qualitative assessment tools and SRP methodologies, and enhance IT systems to support more forward-looking and risk-based supervisory practices.
Basel III Capital Adequacy Framework Development (June 8-18)
The Central Bank of Syria (CBS) strengthened its understanding of Basel III Pillar 1 capital adequacy requirements and the application of IFSB-23 standards for Islamic banks within the Syrian context with support from METAC. The mission enhanced supervisory capacity to assess key components of a risk-based capital framework, including regulatory capital, risk-weighted assets, and minimum capital requirements, while promoting a proportionate approach tailored to local conditions. Practical methodologies were introduced to simplify and strengthen the draft capital adequacy framework, improve internal consistency, and incorporate appropriate national discretions. The mission also supported alignment on a phased implementation roadmap and preparations for a future quantitative impact study. In parallel, it identified important institutional and data-related constraints, including weaknesses in reporting frameworks, supervisory systems, and the availability of reliable financial information, which will require continued attention to support effective implementation of the revised framework.
Tunisia
Developing Regulation on Liquidity Risk Management (June 8-26)
The mission supported the Central Bank of Tunisia (CBT) in strengthening its liquidity risk regulatory framework as part of its broader Basel III reform agenda. While Tunisia has implemented the Liquidity Coverage Ratio (LCR) since 2015 and requires a minimum ratio of 100 percent since 2019, further reforms remain necessary to align the framework with Basel standards. The mission focused on three objectives: (i) developing a qualitative liquidity risk regulation based on Basel principles, (ii) advancing the review of the Tunisian LCR framework against Basel standards, and (iii) preparing a Quantitative Impact Study (QIS) template to support future regulatory revision. To this end, a comprehensive qualitative liquidity regulation was developed, and an LCR QIS tool was refined to assess the impact of future regulatory changes on the banking system.
Yemen
ICT and Cybersecurity scoping mission (July 21-23)
METAC assessed the Central Bank of Yemen’s (CBY) institutional, regulatory, and supervisory arrangements for overseeing ICT and cybersecurity risks in the banking sector and identified key priorities for future capacity development. The assessment provided METAC and the authorities with a shared understanding of the mandate, governance arrangements, resource needs, and operational challenges associated with the newly established ICT and Cybersecurity Division, as well as its relationship with the Banking Supervision Department. The mission identified gaps in the regulatory framework, supervisory methodologies, and institutional capacity needed to address the growing ICT and cybersecurity risks arising from increased financial sector digitalization. Based on these findings, the mission and the CBY agreed on a medium-term roadmap to strengthen ICT and cybersecurity supervision, including regulatory development, capacity building, and the future introduction of specialized off-site monitoring and on-site supervisory tools. The assessment will inform the design and sequencing of a phased METAC technical assistance program in this area.
