Competition Market Study of Tunisia's Retail Banking Sector

Competition Market Study of Tunisia's Retail Banking Sector

This market study provides an assessment of competition in three broad areas of the retail banking sector in Tunisia: current accounts, bank loans for micro, small and medium enterprises and mobile payment services. The report identifies areas where competition is not working as well as it could, re...

Descripción completa

Detalles Bibliográficos
Formato: Libro electrónico
Idioma:Inglés
Publicado: Paris : Organization for Economic Cooperation & Development 2023.
Edición:1st ed
Ver en Biblioteca Universitat Ramon Llull:https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009792116506719
Tabla de Contenidos:
  • Intro
  • Foreword
  • Acknowledgements
  • Abbreviations and acronyms
  • Executive summary
  • Key findings
  • Customer engagement in the current account sector is low
  • Limited lending to micro, small and medium-sized enterprises
  • Unnecessary regulatory restrictions for payment service providers
  • Market structure and regulatory framework stifle competition
  • Key recommendations
  • 1 Introduction
  • 1.1. Services in focus
  • 1.2. Approach
  • 1.3. Sources of evidence
  • 1.3.1. Meetings with stakeholders
  • 1.3.2. Legislation
  • 1.3.3. Surveys
  • 1.3.4. Publicly available data
  • 1.3.5. Proprietary data
  • 1.3.6. Information from the BCT
  • 1.4. Structure of the report
  • References
  • 2 The retail banking sector in Tunisia
  • 2.1. Economic environment
  • 2.1.1. Previous reviews of the banking sector in Tunisia
  • 2.2. Overview of the banking sector
  • 2.2.1. Banks
  • Overall profitability
  • Income sources of Tunisia's listed banks
  • Profitability of Tunisian listed banks
  • Development banks
  • 2.2.2. Other sources of corporate finance
  • Equity market
  • Corporate bond market
  • Leasing
  • Factoring
  • 2.2.3. Other participants in the retail banking sector
  • La Poste Tunisienne
  • The SOTUGAR
  • Caisse des Dépôts et Consignations
  • Public credit information registries
  • Microfinance institutions
  • 2.3. Institutional overview
  • 2.3.1. Main institutions
  • The Banque Centrale de Tunisie
  • The Ministry of Finance
  • The Conseil de la Concurrence
  • The banking association: Conseil Bancaire et Financier
  • References
  • Notes
  • 3 Factors weakening competition in Tunisia's retail banking sector
  • 3.1. Role of state-owned financial institutions
  • 3.1.1. Involvement of the state in financial services
  • 3.1.2. Potential effects on competition
  • 3.1.3. Conclusions
  • 3.2. Ties between large industrial groups and the banking sector.
  • 3.3. Common ownership and interlocking directorates
  • 3.3.1. Potential effects on competition
  • 3.3.2. Common ownership and interlocking directorates in Tunisia's banking sector
  • Legislation
  • Prevalence of connections between Tunisia's listed banks
  • 3.3.3. Conclusions
  • 3.4. Tunisia's banking association: the Conseil Bancaire et Financier
  • 3.4.1. Regulatory framework
  • 3.4.2. Risk of co-ordinated behaviour
  • Restrictions from hiring personnel employed by rival banks
  • 3.4.3. Past and ongoing antitrust investigations in Tunisia's financial sector
  • 3.4.4. Conclusions
  • 3.5. The mediation mechanism in Tunisia's retail banking sector
  • 3.5.1. Regulatory framework
  • 3.5.2. How the mediation mechanism works in practice
  • 3.5.3. Conclusions
  • 3.6. Regulatory set-up in financial services
  • 3.7. Conclusions
  • References
  • Notes
  • 4 Current accounts
  • 4.1. Parameters of competition
  • 4.2. How banks compete
  • 4.3. Market structure and shares of supply
  • 4.3.1. Shares of supply of PCAs and geographical markets
  • 4.3.2. Shares of supply of BCAs and geographical markets
  • 4.3.3. Conclusions on market structure
  • 4.4. Market outcomes
  • 4.4.1. Pricing outcomes
  • Recent trends: fees
  • Price dispersion in PCAs
  • 4.4.2. Quality outcomes
  • Level of satisfaction and dispersion across providers
  • 4.4.3. Quantity outcomes (proportion of consumers and MSMEs with current accounts)
  • Two thirds of Tunisians do not have a PCA
  • Most MSMEs have BCAs
  • 4.4.4. Conclusions on market outcomes
  • 4.5. Customer behaviour
  • 4.5.1. Low levels of consumer engagement
  • 4.5.2. Low levels of MSME engagement
  • 4.5.3. Conclusions on customer engagement
  • 4.5.4. Banks' practices exacerbate customer inaction
  • Barriers to accessing information
  • Barriers to assessing information
  • Barriers to closing and switching accounts.
  • Barriers to opening accounts
  • 4.5.5. Conclusions on customer behaviour
  • 4.6. Payment cards
  • 4.6.1. Conclusions
  • 4.7. Conclusions
  • References
  • Notes
  • 5 Bank loans to micro, small and medium-sized enterprises
  • 5.1. Parameters of competition
  • 5.2. Market structure and shares of supply
  • 5.2.1. Recent trends in lending value
  • 5.2.2. Shares of supply
  • Conclusions
  • 5.2.3. Links between financial firms and non-financial industrial groups, and lending to related parties
  • Potential effects on competition
  • Regulatory framework on lending to related parties
  • 5.2.4. Conclusions
  • 5.3. Market outcomes
  • 5.3.1. Cap on lending interest rates
  • The cap on lending rates
  • The cap is binding on some but not all loans
  • Potential effects of the cap on competition
  • Conclusions on the cap
  • 5.3.2. Onerous collateral requirements
  • 5.3.3. Conclusions on market outcomes
  • 5.4. MSME behaviour
  • 5.5. Lack of a credit information bureau
  • 5.5.1. A credit information bureau could reduce information asymmetries and reduce related arbitrage among big banks
  • 5.5.2. The regulatory framework for credit information bureaus in Tunisia
  • 5.5.3. Conclusions
  • 5.6. Other regulatory restrictions affecting lending conditions
  • 5.7. Conclusions
  • References
  • Notes
  • 6 Mobile payments
  • 6.1. Structure of the sector
  • 6.1.1. Payment service providers
  • 6.1.2. The mobile payment system
  • 6.2. The licensing process for payment service providers
  • 6.3. Fee structure
  • 6.4. Other restrictions on payment service providers
  • 6.5. Conclusions
  • References
  • Notes
  • 7 Barriers to entry and expansion
  • 7.1. Recent entries, expansions and exits
  • 7.2. The bank licensing process
  • 7.3. Branch networks
  • 7.3.1. Conditions for opening and operating branches
  • 7.3.2. The importance of branches to customers.
  • 7.3.3. The importance of branches to banks
  • 7.3.4. Conclusions on branches
  • 7.4. Low consumer engagement
  • 7.5. Conclusions
  • References
  • Notes
  • 8 Summary of findings
  • 8.1. Market structure and regulatory framework stifle competition
  • 8.2. Customer engagement is low
  • 8.3. Limited lending to MSMEs
  • 8.4. Unnecessary regulatory restrictions on payment service providers
  • 8.5. Other findings
  • References
  • 9 Recommendations
  • 9.1. Prioritisation of the recommendations
  • 9.2. The principles
  • 9.3. Measures to strengthen incentives of banks to compete
  • 9.3.1. Reform the Conseil Bancaire et Financier
  • 9.3.2. Strengthen the role of the Conseil de la Concurrence
  • 9.3.3. Strengthen the independence of banks' board members
  • 9.3.4. Rethink the role of the state in the financial sector
  • 9.3.5. Encourage consumers to use online banking services
  • 9.3.6. Strengthen regulatory oversight
  • 9.3.7. Eliminate competitive bottlenecks in the payment card supply chain
  • 9.3.8. Additional considerations
  • 9.4. Measures to increase customer engagement
  • 9.4.1. Measures to improve consumers' ability to make informed decisions on current accounts
  • 9.4.2. Reform the mediation mechanism
  • 9.4.3. Financial education
  • 9.4.4. Strengthen and clarify the financial consumer protection mandate
  • 9.4.5. Measures to improve MSMEs' ability to make informed decisions when shopping around for financial products
  • 9.4.6. Best Current Account Awards
  • 9.5. Measures to increase competition in the market for MSME finance
  • 9.6. Eliminate unnecessary regulatory restrictions on payment service providers
  • 9.7. Other recommendations
  • 9.7.1. Branch networks
  • 9.7.2. Financial sector regulatory set-up
  • References
  • 10 Quantification of consumer benefits
  • 10.1. The benefits of competition.
  • 10.2. Quantifying the benefits of increased competition
  • 10.2.1. Revenues in Tunisia's retail banking sector
  • Bank loans
  • Current accounts
  • 10.2.2. Demand elasticity
  • Bank loans
  • Current accounts
  • 10.2.3. Assumptions underlying average price impacts
  • Bank loans
  • Current accounts
  • Conclusions on price impacts
  • 10.2.4. Estimates of the benefits arising from selected OECD recommendations
  • 10.3. Conclusions
  • References
  • Notes
  • Annexes
  • Annex A. Competition assessment methodology
  • Stage 1: Mapping the sectors and identifying regulations
  • Stage 2: Screening of legislation and the selection of provisions for further analysis
  • Stage 3: In-depth assessment of the harm to competition
  • Stages 4 and 5: Formulation of recommendations and final report
  • References
  • Annex B. Regulatory framework
  • Institutional arrangements
  • Access to market
  • Current accounts and other banking services
  • Lending
  • Payment services
  • Annex C. Consumer and MSME survey methodologies
  • Consumer survey
  • MSME survey
  • Methodology overview
  • Survey questionnaire
  • Data collection
  • Methodology overview
  • Survey questionnaire
  • Data collection
  • References.

Ejemplares similares