For the fifth consecutive year, the Central Bank of Tunisia (BCT) maintained in 2024 its prudent and proactive approach to regulating dividend distribution policies and tightening collective provisions to cover latent risks.
This was highlighted by Governor Fathi Zouhaier Nouri in his presentation of the “Annual Report on Banking Supervision for 2024”, recently published by the central bank.
“This approach has further strengthened the banking sector’s capital position and liquidity, with an average Liquidity Coverage Ratio (LCR) of 223.3%, a total solvency ratio of 14.4%, and a Tier 1 ratio of 11.7%, providing the sector with a buffer of over 4 percentage points to absorb potential shocks from the economic environment,” he noted.
He also emphasized that the Tunisian banking system evolved in 2024 amid a complex and unstable national and international context, marked by economic volatility, rising protectionist trends, and persistent geopolitical tensions.
In this challenging environment, the BCT continued its efforts to preserve financial stability and strengthen the banking system’s resilience in service of the national economy and public interest.
“Sources of Vulnerability”
However, the central bank remains concerned about persistent vulnerabilities affecting sector stability, including: sluggish economic growth, an unprecedented slowdown in credit activity, particularly due to weak private investment, increased exposure to troubled public enterprises and a worrying rise in credit risk.
Indeed, the share of classified loans rose by 200 basis points over the last two years, reaching 14.5% at the end of 2024, reflecting the difficulties faced by private companies, particularly SMEs.
Governor Nouri affirmed that the BCT remains fully mobilized to pursue preventive prudential measures, ensuring financial stability and aligning Tunisia’s prudential regulatory framework with international standards.
To this end, in April 2025, the central bank officially launched a broad consultation with the banking sector and stakeholders on a comprehensive prudential and regulatory reform program, covering: capital adequacy standards, risk classification and coverage rules and an IFRS 9 guide (International Financial Reporting Standards).
Anti-money laundering and terrorist financing
The BCT Governor also emphasized that the bank continues to strengthen compliance systems and risk management against money laundering and terrorist financing, in line with FATF recommendations.
This effort is part of a broader strategy to preserve financial stability and maintain trust among national and international partners.
A new internal risk monitoring process based on a risk-based approach has been formalized for AML/CFT/FP at the banking sector level.
At the same time, the BCT plans to integrate environmental and social dimensions into banking risk governance and economic financing.
