Algeria issues new accounting chart for banks, financial institutions

• On 24 July 2025, the Bank of Algeria issued Regulation No. 25-07, introducing a new chart of accounts for banks and financial institutions that replaces the previous framework established in 2009.
• The new regulation features an eight-class chart of accounts, aligning recognition and measurement principles with Law No. 07-11, and enhancing rules for securities and foreign exchange transactions.
• Banks and financial institutions must comply with the new accounting framework within 24 months, during which they must submit to the Banking Commission semi-annual progress reports on their implementation status.
• Entities in the banking sector should prepare for the transition to the new accounting standards, ensuring their systems and processes align with the updated requirements to enhance transparency and facilitate effective supervision.

On 24 July 2025, the Bank of Algeria issued Regulation No. 25-07, introducing a new chart of accounts for banks and financial institutions. This regulation replaces the former framework established by Regulation No. 09-04 dated 23 July 2009, as part of the Bank of Algeria's ongoing reforms to modernize the national financial accounting system and enhance the banking sector's transparency in financial statements.

New regulation

The principal amendments introduced by this regulation include:

• A redefinition and reorganization of accounting classes, expanding to an eight-class chart of accounts
• Alignment of recognition and measurement principles with Law No. 07-11, which governs the financial accounting system
• Alignment of rules for securities and foreign exchange transactions with Regulations No. 25-05 and No. 25-06
• Proportional compliance for payment service providers with this regulation based on the nature and scale of their activities

Furthermore, the new chart of accounts enhances the differentiation between interbank operations, client transactions and off-balance-sheet commitments, thereby facilitating more effective prudential supervision and clearer analytical assessment of banks and financial institutions' financial statements.

Banks and financial institutions must comply with the provisions of this regulation within 24 months of its publication in the Official Gazette. During this transition period, they are required to submit semi-annual progress reports to the Banking Commission detailing the implementation status of these new provisions.

The Bank of Algeria has also indicated that further implementation guidance may be provided through specific instructions, if deemed necessary.

Implications

Affected entities in the banking sector should prepare for the transition to the new accounting standards, ensuring their systems and processes align with the updated requirements to enhance transparency and facilitate effective supervision.