Banking
From The Report: Tunisia 2018
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Despite the challenges to Tunisia’s economy, the banking sector has experienced positive growth in recent years. Several risks, however, still threaten the overall health of the sector, including a reduction in available liquidity, low levels of capitalisation and credit risk. In an effort to address these issues, the Central Bank of Tunisia has been implementing significant structural reforms, however, barriers to consolidation may limit activity in the short term. In the longer term, the financial system will be instrumental to diversifying the economy’s sources of funding away from traditional banks, with more inclusive opportunities stemming from the Islamic banking, microfinance and leasing segments. This chapter contains interviews with Chedli Ayari, Former Governor, Central Bank of Tunisia; and Habib Ben Hadj Kouider, Director-General, Banque Nationale Agricole (BNA).
Articles from this Chapter
Taking care: Reforms resulting from the 2016 Banking Law will grow niche segments and align the sector with international norms
Taking care: Reforms resulting from the 2016 Banking Law will grow niche segments and align the sector with international normsOBGplus
Tunisia’s banking sector has experienced positive growth in recent years, with 2017 proving to be another strong period on many fronts. Several risks, however, still threaten the sustainability of this growth trend and the overall health of the sector, including a reduction in available liquidity, low levels of capitalisation and credit risk. In an effort to address these issues, the Banque Centrale de Tunisie (BCT) has been implementing significant structural reforms, laid out in the New…
Minimising risk: Chedli Ayari, Former Governor, Central Bank of Tunisia (Banque Centrale de Tunisie, BCT), on modernisation and liberalisationOBGplus
What is being done to further modernise the sector and converge with international standards? AYARI: The new banking law is better aligned with international banking practices in terms of resolution, security, recovery, governance and risk management. Regarding governance, it is the first time that banks are required to put measures of good governance in place, so a culture of best practices is developing. However, there are new risks that need to be addressed, such as market risk and money…
Minimising risk: Chedli Ayari, Former Governor, Central Bank of Tunisia (Banque Centrale de Tunisie, BCT), on modernisation and liberalisationOBGplus
What is being done to further modernise the sector and converge with international standards? AYARI: The new banking law is better aligned with international banking practices in terms of resolution, security, recovery, governance and risk management. Regarding governance, it is the first time that banks are required to put measures of good governance in place, so a culture of best practices is developing. However, there are new risks that need to be addressed, such as market risk and money…
Proceeding with caution: As retail lending expands, banks aim to limit their exposure to credit riskOBGplus
Since 2010 retail lending has been growing faster than total lending in Tunisia, indicating a change in consumption patterns within the population despite a broader context of slow economic growth. In addition, banks – which continue to dominate the financial system and lending to the economy – have been adjusting their credit risk-control measures in recent years, following the leadership of the Banque Centrale de Tunisie (BCT). On the back of these changes, though, many individuals and…
Proceeding with caution: As retail lending expands, banks aim to limit their exposure to credit riskOBGplus
Since 2010 retail lending has been growing faster than total lending in Tunisia, indicating a change in consumption patterns within the population despite a broader context of slow economic growth. In addition, banks – which continue to dominate the financial system and lending to the economy – have been adjusting their credit risk-control measures in recent years, following the leadership of the Banque Centrale de Tunisie (BCT). On the back of these changes, though, many individuals and…
On the cards: Electronic payments and digitalisation are key measures to grow the banked populationOBGplus
While the number of debit cards and credit cards in circulation has increased in recent years, obstacles to electronic payments remain, particularly in Tunisia’s in-land governorates, which suffer from limited banking services. Other factors, such as a cultural bias against banks and electronic payments, contribute to relatively low banking penetration across the country. Part of the solution to bring more citizens into the fold of the financial sector could lie in digital banking services.…
On the cards: Electronic payments and digitalisation are key measures to grow the banked populationOBGplus
While the number of debit cards and credit cards in circulation has increased in recent years, obstacles to electronic payments remain, particularly in Tunisia’s in-land governorates, which suffer from limited banking services. Other factors, such as a cultural bias against banks and electronic payments, contribute to relatively low banking penetration across the country. Part of the solution to bring more citizens into the fold of the financial sector could lie in digital banking services.…
Fintech revolution: Tech solutions are driving the evolution of the sector landscapeOBGplus
Once reserved for ambitious start-ups and industry-leading tech operators, financial technology (fintech) has more recently caught the attention of major private sector firms and government planners alike, becoming a regular feature in budget speeches and strategic development plans. As fintech progressively plays a larger part in the lives of consumers, investors have quickly come to recognise its potential as a growth industry. The tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and grew by some 30% over 2017. Fintech is rapidly advancing across an array of global…
Fintech revolution: Tech solutions are driving the evolution of the sector landscapeOBGplus
Once reserved for ambitious start-ups and industry-leading tech operators, financial technology (fintech) has more recently caught the attention of major private sector firms and government planners alike, becoming a regular feature in budget speeches and strategic development plans. As fintech progressively plays a larger part in the lives of consumers, investors have quickly come to recognise its potential as a growth industry. The tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and grew by some 30% over 2017. Fintech is rapidly advancing across an array of global…
Shaping into success: Habib Ben Hadj Kouider, Director-General, Banque Nationale Agricole (BNA), on restructuring policiesOBGplus
What are the main challenges associated with the recapitalisation and restructuring of public banks? KOUIDER: To develop and strengthen the public financial sector, in 2013 the Banque Centrale de Tunisie (BCT) launched a restructuring programme targeting three public banks. The main challenges involve meeting the objectives of the programme in terms of ratios, financial indicators, risk management, and compliance with national and international standards. In particular, we are working on maintaining…
Shaping into success: Habib Ben Hadj Kouider, Director-General, Banque Nationale Agricole (BNA), on restructuring policiesOBGplus
What are the main challenges associated with the recapitalisation and restructuring of public banks? KOUIDER: To develop and strengthen the public financial sector, in 2013 the Banque Centrale de Tunisie (BCT) launched a restructuring programme targeting three public banks. The main challenges involve meeting the objectives of the programme in terms of ratios, financial indicators, risk management, and compliance with national and international standards. In particular, we are working on maintaining…
