Banking
From The Report: Tunisia 2019
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In a context of significant macroeconomic challenges, Tunisia’s banking sector has demonstrated solid performance over 2017 and 2018. However, the banking sector will continue to grapple with a number of pressing challenges in the coming years, stemming in large part from weaknesses in the broader economy, which raises banks’ portfolio risk. Although the central bank is likely to continue to push for sector consolidation, in order to strengthen the sector’s players and boost overall stability, it is uncertain when a clear move towards consolidation will begin to take place. For the moment, having a large number of inadequately financed banks will continue to prevent the sector from making a more complete contribution to the economy. This chapter contains interviews with Mohamed Agrebi, General Manager, Banque Internationale Arabe de Tunisie; and Essma Ben Hamida, Co-Founder, Enda Tamweel.

Articles from this Chapter

Overview

Fundamental revamp: The authorities pursue reforms to bring regulations in line with international standards
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In a context of significant macroeconomic challenges, Tunisia’s banking sector has demonstrated solid performance over 2017 and 2018. However, banking activity still faces several challenges, and its resilience in overcoming these will determine the success of its evolution over the coming years. Ongoing liquidity insufficiency, coupled with credit risk and reduced levels of capitalisation are primary weaknesses. In particular, new requirements that seek to bring domestic regulations in line with…

Analysis

Small packages: New microfinance institutions are helping to expand lending opportunities and improve access to credit
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While the structure of Tunisia’s banking sector prevents it from adequately financing the economy at large, recent developments in the microfinance segment are helping to attract customers. The impact of these new players is especially being felt among the small business community. Despite the fact that multiple microfinance associations were active beforehand, it was only after Tunisia’s 2011 popular uprising that the segment’s development accelerated. One significant facilitator in this…

Interview

New trades, new aids: Mohamed Agrebi, General Manager, Banque Internationale Arabe de Tunisie, on supporting small businesses with digital tools
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Interview:Mohamed Agrebi In what ways can digitalisation help to meet the liquidity needs of the economy? MOHAMED AGREBI: The notes and currency presently in circulation amount to TD12.5bn ($4.3bn). This level has been disproportionate to the needs of the economy since 2011. While a slowdown in the growth rate of the currency in circulation occurred in 2018, large-scale informal activity and tax evasion continue to weigh on bank liquidity. In addition to regulatory and legal measures –…

Interview

A lending hand: Essma Ben Hamida, Co-Founder, Enda Tamweel, on the potential of microfinance to expand financial inclusion
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Interview:Essma Ben Hamida What are the main challenges in microfinance? ESSMA BEN HAMIDA: Microfinance in Tunisia has performed well in recent years, with its outstanding portfolio increasing 34% year-on-year in December 2018. In addition, the number of active clients rose to 400,000, representing a 13% increase over the same period. However, the sector’s development is somewhat hampered by a non-conducive regulatory framework which, for instance, made refinancing difficult for microfinance…