Tunisia Way

Significant measures have been taken to consolidate and modernise the banking environment and to improve the diversification of the financing sources. Privatisation of the banking environment has been accelerated, the legal and regulatory framework modernised by introducing universal banking and the alignment to international prudential standards. The action plan targets enhanced banking operations by consolidating the financial base, strengthening prudential and supervisory regulations, and modernising the management methods to improve the quality of services.

The banking environment includes the Central Bank, 20 trade and development banks, two investment banks, eight offshore banks, nine offices representing foreign banks, and specialised financial institutions such as two factoring companies and 11 leasing companies. Interest rates are freely set.

Banking legislation has strengthened prudential rules and the solvency ratio. The commitment/capital equity rate is 8 percent, in accordance with Basle II international norms. The latest reforms have introduced the concept of universal banking and implemented an electronic clearing system for transactions, implemented a scheme to guarantee deposits and loans as well as made considerable progress in introducing electronic money.

The sector is being opened to foreign partnerships and the government sold its 52 percent stake in the Union Internationale de Banque (UIB) to the French Société Générale while privatising the Banque du Sud.

The money market has undergone major transformation in both structure and products. It is managed by a private entity and the monetary market council regulates the sector and monitors operations.

Quotation on the stock exchange is handled by an electronic system and there are 46 companies currently listed on the Tunis Stock Exchange. Acquisition by foreigners of shares in companies listed on the stock exchange does not require an authorisation if no more than 50 percent of capital is acquired. Foreign investors hold 21 percent of market capitalisation.