The Bank of Algeria has issued a new directive establishing the framework for factoring activities within banking and financial institutions. Signed on October 7, 2026, by Governor Mohand Bouray, the instruction implements the regulation dated August 13, 2026, intended to organize corporate financing and clarify procedures for transferring commercial debts. Factoring is defined as the process where a creditor assigns trade receivables to a financial entity in exchange for immediate payment, with the institution assuming collection risks for a fee. The directive mandates a rigorous process starting with an application and financial assessment of both the client and the debtor, followed by a written contract specifying identities, obligations, credit ceilings, and termination terms.