Tunisian financial system shows mixed performance with strong stock market and slow credit growth
The Tunisian financial system exhibits contrasting trends, as highlighted by the Macroprudential Surveillance and Financial Crisis Management Committee during its 12th meeting on August 27, 2026, at the Central Bank of Tunisia. While the banking sector maintains robust prudential indicators, with a 15.2% average solvency ratio and a 12.2% Tier 1 ratio as of March 2026, credit activity saw only a 1.3% increase in the first half of 2026. This slow growth is attributed to limited credit extended to the private sector and individuals. Non-performing assets also slightly increased from 14.9% at the end of 2025 to 15.1% by June 2026. In stark contrast, the financial market has shown significant dynamism. The Tunindex recorded a 49% increase by the end of July 2026, and trading volume on the stock exchange surged by 60.9% compared to the same period in 2025. Collective Investment Undertakings also saw their net assets grow by 35.1% to nearly 11.48 billion dinars by July. Despite a temporary volatility episode in late July, which triggered circuit breakers, the market quickly recovered, demonstrating its resilience. The primary market, however, saw a 5.8% decline in emissions in May 2026, primarily concentrated in Treasury issuances. The insurance sector reported 4.24 billion dinars in turnover and 10.82 billion dinars in investments in 2025, with comfortable prudential indicators. The microfinance sector continues to expand, serving 856,000 microcredit beneficiaries by the end of 20