Tunisia moving towards transparent and efficient financial system

Feb 08, 2012

Christine Lagarde, Director of the International Monetary Fund, recently claimed efforts to improve the economic growth in Tunisia must be concentrated on "reviving the economy, financial regulation and transparency", Xinhua news agency reports.

Christine Lagarde, Director of the International Monetary Fund, recently claimed efforts to improve the economic growth in Tunisia must be concentrated on "reviving the economy, financial regulation and transparency", Xinhua news agency reports.

She explained these changes are necessary after 2011 was marked by an "economical contraction", with a negative growth of 1.8 percent.

The Tunisian Central Bank's Governor identified the current banking system's main problems in a speech made last week during the international conference on the Tunisian financial system.

He mentioned the confusion between decisions and control roles, the lack of competence, a personalised form of management rather than a collective one, the lack of formal procedures and the lack of respect for regulatory norms, Kapitalis newspaper reports.

To solve this issue, the Tunisian government has planned several banking reforms, targeting an improvement of banking services and their diversification thanks to the integration of new products.

Among these products are high interest rate savings accounts, designed to attract a larger number of customers, La Presse newspaper reports.

Other reforms target the strengthening of banking structures in terms of capital stock in order to rebuild the trust between promoters and banking institutions.

Banks are therefore urged to conform with international standards by mobilising enough resources from savings to cover the risks.

Finally, the banks monitoring internal audits will be strengthened through an increase in risk assessment operations.
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