Here is the rewritten article in Markdown format with proper headings, subheadings, and bullet points:
Banking Law and Regulations in Tunisia
The Central Bank of Tunisia (CBT) has implemented various laws and regulations to strengthen the banking sector. Key milestones include:
AML Risk Management Framework 2014
- Introduced specific framework for treating banks in difficulty
- Enhanced risk management practices in the banking sector
Banking Law 2016
- Established risk-based supervision
- Revised conditions for accessing and exercising banking activity
Operational Risk Capital Requirement (2018) and Market Risk Capital Requirement (2017)
- Introduced to ensure robust capital requirements and mitigate potential risks
Exceptional Measures (2020-2021)
Due to the COVID-19 pandemic, the CBT implemented several exceptional measures:
Suspension of Dividend Distribution
- In April 2020, all distributions for 2019 were suspended.
Authorization to Distribute Dividends
- In March 2021, banks were authorized to distribute dividends on accumulated profits from fiscal years 2019 and 2020.
Basel III Implementation
The CBT aims to implement Basel III standards by:
Finalizing Supervision Project on a Consolidated Basis
- Ensuring comprehensive oversight of banking activities
Launching Micro Impact Study on IFRS 9
- Assessing the impact of IFRS 9 on banks’ financial statements
Redesigning Circular on Internal Rating System
- Enhancing risk assessment and management practices
Current Status of Basel Standards in Tunisia
| Standard | Current Status | Deadlines |
|---|---|---|
| Capital Countercyclical capital buffer | Not yet started | Banks have a sufficient buffer thanks to measures taken by CBT |
| Definition of Equity | In progress | 2023 |
| Calculation of RWA for credit risk | In progress | 2023 |
| Revised requirements for market capital | Not applicable | CBT is applying Basel II requirements |
| Revised operational risk framework | In progress | 2023 |
| Leverage ratio | Not yet started | Discussions to define an action plan are ongoing |
| SIB G-SIB Requirements | Not applicable | Not applicable in Tunisia |
| D-SIB Requirements | Not yet started | Banking law adds to CBT’s prerogatives the publication of a list of systemic banks |
| IRRBB Internal Rate Risk in Banking Book | In progress | 2023 |
| Liquidity Monetary tolls of intraday liquidity management | Not yet started | Close monitoring and special reporting are ongoing |
| Net Stable Funding Ratio | In progress | CBT introduced LTD ratio as transitional ratio before moving to NSFR |
| Liquidity Coverage Ratio | Completed | Introduced in 2014 with first application starting in 2015 |
| Large Exposure | Not yet started | Ratio currently in force: risks incurred on a single beneficiary must not exceed 25% of net equity |
I hope this helps! Let me know if you have any further questions.