As part of strengthening cooperation between Tunisian banks and financial institutions and the Arab banking sector, the Tunisian Professional Association of Banks and Financial Institutions has just signed two partnership agreements with the Union of Arab Banks (UBA), in the presence of the Governor of the Central Bank and a host of bankers.
The first agreement concerns the areas of general cooperation between UBA and APBEF, under which a study on the Tunisian economy will be conducted focusing on the investment opportunities of Arab banks in Tunisia and the areas of cooperation between the two parties in the banking sector.
Settlement of disputes between Tunisian banks
The second agreement concerns the Mediation and Arbitration Centre of the Union of Arab Banks, with a partnership agreement aimed at resolving disputes between the various Tunisian banks.
Secretary General of the UBA, Wissam Fattouh told AfricaManager this work will be conducted with the Tunisian banking sector in cooperation with the association and in coordination with the Central Bank of Tunisia. The latter will develop an “ambitious action plan aimed at contributing to strengthening the Tunisian financial banking activity by preparing a study on the Tunisian economy and the opportunities offered by the banking sector to those wishing to invest in Tunisia, especially in the green finance sector.
He also indicated that a partnership will be established between the Arab Institute for Risk Management and the Professional Association of Banks in order to develop Tunisian banking and financial skills and resources.
For his part, President of the Professional Association of Banks Mohammad Agrebi, underlined that the signed agreements will allow enhancing cooperation and sharing of experiences between the two institutions in several fields. This is besides the signing of a partnership contract between the Association and the Conciliation and Arbitration Centre with the aim of cooperating within the framework of an Arab Federation of Banks and Financial Institutions in order to solve the problems that may arise at the level of banks and the relations between them.
He also said the cooperation between Arab banks will allow the sector to reach an internationally recognized strength, in addition to the exchange of experiences between the Professional Association and the Union of Arab Banks, which will allow all banks to exchange international experiences to improve the solidity and the resistance of the Tunisian banking and financial sector.
Unifying arbitration procedures
It is worth noting that the Mediation and Arbitration Centre of the Union of Arab Banks works on securing alternative methods of resolving banking disputes between banks in Arab countries, and also contributes to the settlement of all national and international disputes.
It is important to note that the Unified Mediation and Arbitration Centre, whose main mission will be to settle disputes between Arab banks, is also intended to unify arbitration procedures with international procedures. “The center will be independent of banks and impartial,” said Wissam Fattouh, secretary general of the UBA.
Established in the 1980s, it has rarely been operational. “Banking regulations have changed a lot since then, which has forced UAB to redefine its competences,” explained Fattouh.
Its missions are all the more important as banking and financial institutions prefer to resort to state courts and do not consider arbitration as the main method of dispute settlement.
In fact, arbitration, both commercial and investment, deserves the place of a procedural option to be considered by banking and financial institutions in their litigation strategy. Its undeniable advantages are highlighted by the transformation of banking litigation in the wake of the 2008 financial crisis.
Institutional arbitration should be favored by banking and financial institutions as they are not used to arbitration and are therefore more exposed to the hazards of arbitration proceedings; they would then benefit from the services and experience of the secretariats of arbitration institutions.
