Green banks in Tunisia: Issues and challenges

Abstract

This paper explores the development of the concept of “green banks” in Tunisia, focusing on the role of regulators and the central bank in ensuring this transmission. The paper also examines the involvement of banks in the green economic transition and the various challenges. The study is based on the review of articles and research works regarding the emergence of green banks, especially in Tunisia (2018–2022); it also collected information and statistics from the websites and reports of Tunisian banks. The results of this work showed the critical role played by the Central Bank of Tunisia in encouraging banks to move towards greening the system. Also, several Tunisian banks are aware of the seriousness of climate change and have tried to implement several initiatives and services to accelerate green growth. However, Tunisia still needs to catch up with developed and some developing countries. Our findings help bankers and regulators better address climate change and its effect on the financial sector to achieve greater financial stability. These results contribute to banking in Tunisia by providing bankers and regulators with new tools to manage the impact of climate change on the banking sector.