15 November 2018

Central Bank of Tunisia Imposes on Banks not to Exceed the Loans Level of 120%

Tunisia bank

The Central Bank of Tunisia imposed a ratio of loans compared to new deposits (loans / deposits ratio) within 120 per cent according to a circular issued by the Bank since November 2018. The new ratio will enable a better fit between the resources and the Bank’s uses and control the risk of transferring maturities. According to the circular, banks, which exceed 120 percent of the end of the tripartite, must take the necessary measures to reduce this ratio during the triennium, which follows. Banks must provide the status of the loans / deposits ratio to the Central Bank. In case of exceeding the stipulated level (120 percent) during the trimester, the financial institution should provide, for the 10-day Central Bank, a work plan for the measures to be taken to assess the situation Compared to organizational.

 On the other hand, if the evaluation procedures are not implemented, the bank is obliged to pay a written amount according to the value of the debts, which recorded a deviation from the target and the number of days during the triennium concerned. The measures, which are set out in the circular, will come into force from the last trimester of 2018 based on the ratio of loans / deposits to the end of September 2018. According to the accountant, Walid Ben Saleh, most banks register a significant excess of this ratio and asked about the ability of Tunisian banks to respect these new conditions imposed by the Central Bank, especially in the absence of effective measures that allow restoring confidence in the banking system and ensuring its development and upgrading the rate of recourse to banking services .
Since September 7, 2018, the central bank has determined that the ratio of loans / deposits will be to “pay the banks, which have very high levels of this ratio, some of which reached 150 percent, to gradually reduce them, within 3 percent every three months.”
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Mouez Benrejeb

Mouez Benrejeb

Media and journalist at NEFZAWA FM KEBILI Mouez is an accredited correspondent for international news agencies, Diplomatic adviser, and founding member of the Voice of Nafzwa Association. Arab and African champions in athletics. Communications Engineer.

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