Central Bank of Tunisia’s Banking Sector Reforms

The Central Bank of Tunisia (CBT) has been working to strengthen the country’s banking sector by implementing reforms in accordance with international standards. The CBT has outlined several key initiatives across three cycles from 2011 to 2021.

First Cycle (2011-2015)

• Key Reforms:
  • Implemented a specific framework for handling banks in difficulty
  • Revised the sanction system
  • Established a bank deposit guarantee fund
  • Reorganized the banking market
  • Strengthened the CBT’s role as a prudential authority
  • Improved banking governance

Second Cycle (2016-2020)

• Key Initiatives:
  • Introduced Operational Risk capital requirements
  • Developed an Internal Counterparty Rating System
  • Overhauled regulatory reporting
  • Implemented LTD 2016-2020, with some deadlines postponed and the loan/deposit ratio relaxed during the COVID-19 crisis

Third Cycle (2020-2021)

• Response to the COVID-19 Crisis:
  • Took exceptional measures due to the pandemic
  • Finalized a supervision project on a consolidated basis
  • Published a circular defining prudential consolidation and its methods
  • Completed an IFRS macro impact study and launched a micro impact study on IFRS 9

Basel III Implementation in Tunisia

The CBT has outlined the status of Basel III implementation in Tunisia.

• Adoption Status:
  • Capital (countercyclical capital buffer): Not yet started
  • Definition of Equity: In progress (2023)
  • Calculation of RWA for credit risk: In progress (2023)
  • Revised requirements for market capital: Not applicable
  • Revised operational risk framework: In progress (2023)
• Additional Requirements:
  • Leverage ratio: Not yet started
  • SIB G-SIB Requirements: Not applicable
  • D-SIB Requirements: Not yet started
  • IRRBB (Internal Rate Risk in the Banking Book): In progress (2023)
  • Liquidity:
    • Monetary tolls of intraday liquidity management: Not yet started
    • Net Stable Funding Ratio: In progress
    • Liquidity Coverage Ratio: Completed (2014)
  • Large Exposure: Not yet started
  • Disclosure: Keys metrics, CAR, Tier 1, Capital composition, IRRBB: Not yet started