Tunisia’s Banking Sector Set for Challenges Ahead
Despite Solid Performance, Challenges Persist
Despite a solid performance in 2017 and 2018, Tunisia’s banking industry is facing significant challenges that are likely to persist in the coming years. The sector’s growth has been hindered by weaknesses in the broader economy, which have increased portfolio risk for banks.
Key Challenges Facing the Banking Sector
- Economic Weaknesses: The country’s economic performance has been hindered by various factors, including a large number of inadequately financed banks.
- Sector Consolidation: The Central Bank of Tunisia is pushing for sector consolidation to strengthen players and boost overall stability.
- Limited Contribution to the Economy: With many underfunded banks still operating, the sector’s potential contribution to the economy remains limited.
Industry Experts Warn of Risks
Industry experts warn that the current state of the banking industry in Tunisia poses significant risks for economic growth and stability. The country’s banking sector needs to adapt to changing market conditions and address its structural weaknesses in order to play a more effective role in supporting the economy.
Call to Action: Promote Financial Inclusion
Industry leaders are emphasizing the need for banks to work together to strengthen their competitiveness, improve services, increase efficiency, and reduce costs. Mohamed Agrebi, General Manager of Banque Internationale Arabe de Tunisie, emphasized the importance of promoting financial inclusion in Tunisia’s banking sector.
- Financial Inclusion: Essma Ben Hamida, Co-Founder of Enda Tamweel, highlighted the need to ensure that all segments of society have access to banking services, including those who are underserved or excluded from the formal financial system.
- Adaptation and Evolution: The future of Tunisia’s banking industry remains uncertain, but one thing is clear: it needs to adapt and evolve in order to meet the challenges of a rapidly changing economy.
The future of Tunisia’s banking sector will depend on its ability to address these challenges and promote financial inclusion. With concerted effort and a willingness to adapt, the sector can play a more effective role in supporting the country’s economic growth and stability.