Tunisian Banking Sector Strengthens Stability with 4% Capital Buffer
The Tunisian banking sector continues to reinforce its stability, boasting a capital buffer of 4%. This was highlighted during the 10th meeting of the Macro-Prudential Oversight and Financial Crisis Management Committee, established under Article 85 of Law No. 2016-35.
Meanwhile, banking liquidity remains at satisfactory levels, with a short-term liquidity ratio (LCR) exceeding 200% and a credit-to-deposit ratio of 102.5%.
Deposit collection has also seen a significant increase of 8.1% over the past year, indicating a positive trend, according to the Central Bank of Tunisia (BCT).
However, the committee notes a slowdown in credit granting, with an increase of only 1.8% over the first nine months of the year. Furthermore, the share of non-performing assets has reached 14%, which could impact the sector's long-term stability.
On the financial market, the Tunindex has recorded a notable increase of 12.7% over the first 10 months of 2024, despite a 9.1% decrease in trading volume compared to October 2023.
It is worth noting that microfinance also contributes to financial inclusion, with nearly 800,000 beneficiaries and a microfinance portfolio of over 2 billion dinars as of June 2024.
