This document discusses money and banking globally and in Tunisia. It describes how central banks supply money and regulate banking systems around the world. In Tunisia, the dinar is the official currency, divided into 1000 milim. The banking sector has grown but faces risks like low liquidity and capitalization. The Central Bank of Tunisia is implementing reforms while opportunities exist to diversify the economy and increase financial inclusion in the future.

1. MONEY & BANKING
PREPARED BY :
SOUMAYA NEBLI
IBTISSEM SLIMENI
M1VIC
1

2. CONTENTS
Introduction
Money banking in the world
Money banking in tunisia
Conclusion
2

3. INTRODUCTION
 Evidence says that money has important role in generating business cycles, so money
banking is the use of macro- and microeconomic theory in the analysis of the
interrelations of money and banking.
 to examine how financial markets and foreign exchange markets work an their
evolution,
 to explain behavior in financial markets,
 to serach for profits,
 to examine the role of money in the economy.
3

4. BANKS
 are institutions that operate between a saver who deposits money in the bank, and a
borrower who receives a loan from the bank.
 Role of Banks:
1.Banks recycle(Loans) and help circulate money.
2. With out banks, the economy would dry up.
3. Great Depression made worse by consumer lack of faith in banks.
4

5. WHAT IS MONEY ?
 “ Money is whatever is generally accepted in exchange for goods and services—
accepted not as an object to be consumed but as an object that represents a temporary
abode of purchasing power to be used for buying still other goods and services.”
Milton Friedman
5

6. MONEY BANKING INTHE WORLD

7. FIVE CORE PRINCIPLE OF MONEY AND BANKING
 TIME has a value
 RISK requires compensation
 INFORMATION is the basis for decisions
 MARKETS determine prices and allocation resources
 STABILITY improves welfar
7

8. MARKET
Connect borrowers to lenders.
A market sets a price that rations scarce resources to
those willing and able to pay. Similarly, in the financial
sector markets will determine what investments get
funded.
TIME
Time has value and inflation adversely
affects. Time affects decisions on
immediate or later consumption,
investment and compound interest
earning.
RISK
Risk (potential losses) is
unavoidable and requires
compensation. Usually higher
risk opportunities have higher
interest rates (i.e. higher
reward).
STABILITY
Economic or market stability improves welfare in
the economy. Central banks work to keep markets
and the financial system stable, which is better for
all individuals
Information
Information is the basis for
decisions . Problems can arise
when there is asymmetric
information.

9. HOW MUCH MONEYTHERE IS IN THEWORLD ?
 A comparable tally of currency in circulation from all over the world,
tracked by the Bank for International Settlements, totals about $50
trillion.
 Add in checking accounts, savings accounts, money-market accounts not
quite physical money, but you can make a bank transaction digitally and
use that as money ,the global total is in excess of $80 trillion.
 Banks always have your money out working in the economy

10. THE MOST POPULAR CURRENCY IN USE
 The U.S. dollar is the most popular currency in use worldwide
for countries, central-bank reserves, wealthy people's cash
holdings, and criminal enterprises.
 Because of the stability of the United States, it's the most liquid
currency.

11. THE LARGEST BANKS INTHE WORLD
The world’s 10 largest banks have mind-boggling
assets of about $25.81 trillion combined:
 Industrial & Commercial Bank of China, or
ICBC
 China Construction Bank Corp.
 Agricultural Bank of China
 Bank of China
 HSBC Holdings
 JPMorgan Chase & Co.
 BNP Paribas
 Mitsubishi UFJ Financial Group
 Bank of America
 Credit Agricole Group

12. THE BANKING SYSTEM
 In most countries, money is supplied by the central bank. In the
United States the central bank is the Federal Reserve. The
Federal Reserve not only supplies money and sets the price of
money through a variety of mechanisms, but also regulates the
banking system of the United States.

13. A CONTINUAL RISE IN THE PRICE LEVEL (INFLATION) AFFECTS ALL
ECONOMIC PLAYERS . DATA SHOWS A CONNECTION BETWEEN THE
MONEY SUPPLYAND THE PRICE LEVEL.

14. MONEY BANKING INTUNISIA

15. TUNISIAN DINARTND
TND TUNISIAN DINAR:
Country:
Tunisia
Region: Africa
Sub-Unit: 1 DT = 1000 milim
Symbol: DT
The Tunisian dinar is the official currency of Tunisia and is subdivided into 1000 milim or millimes .
The international code is TND although the abbreviation DT is often used in
Tunisia as it is derived from the French 'Dinar Tunisien'.
15

16. COINS AND BANKNOTES OF TUNISIAN DINAR IN CIRCULATION
CURRENTLY, WE HAVE COINS OF 5, 10, 20, 50 AND 500 MILLIMES AND 1, 5 AND 10 DINARS
IN CIRCULATION:
16

17. ASSESSMENT OFTHETUNISIAN ECONOMY
 Despite the challenges to Tunisia’s economy, the banking sector has experienced
positive growth in recent years. Several risks, however, still threaten the overall health
of the sector, including a reduction in available liquidity, low levels of capitalisation and
credit risk.
 In an effort to address these issues, the Central Bank ofTunisia has been
implementing significant structural reforms, however, barriers to consolidation may
limit activity in the short term. In the longer term, the financial system will be
instrumental to diversifying the economy’s sources.

18. OPPORTUNITIES AND FUTURE PLANS
 The industry, which is currently facing a tight liquidity environment, is also widely
thought to be ripe for consolidation, though new players continue to enter the
market, attracted in part by the limited level of financial inclusion, which points to
extensive greenfield opportunities.
 Changes such as the recent recapitalisation and restructuring of the country’s public
banks, and plans to move the sector towards Basel III norms by 2020 should all help
reinforce the stability of the banking system in the years ahead.

19. EXCHANGE RATES
For current exchange rates see www.xe.com.
19

20. CONCLUSION
 Studying Money Banking is a way to see how money effects our economy worldwide
or in Tunisia .
 In the world , banking system is presented by the central bank . It’s the only supplier
of money to most counties .
 In Tunisia , money banking is effected by the international economy and inflations .
Expertise see an opportunity for Tunisian economy to recover and to evolve in the
years in coming .
20

21. REFERENCE
 https://www.elsevier.com/books/money-banking-and-economic-activity/makinen/978-0-12-468950-3
 https://themoneyconverter.com/TND/EUR.aspx
 https://www.globalexchange.es/en/currencies-of-the-world/tunisian-dinar
 https://www.lonelyplanet.com/tunisia/a/nar-gr/money-and-costs/355680