Starting in the nineties, Tunisia implemented important reforms and modernization programs in many financial areas, and important progress has been achieved mainly in terms of modernizing the banking system (IMF 2000). However, exposure to high credit risks and other important weaknesses persist within this system; for instance, many banks continue to suffer heavily from non performing loans (NPL), a low level of provisioning, a large volume of non-interest bearing assets, and a high exposure to vulnerable and risky activities, for instance in tourism. Nevertheless, a more radical liberalization ...
