Financial Services

The decision by authorities to embark on a programme of monetary financing towards the end of 2017 marked somewhat of a turnaround in a difficult year for Algeria’s banks. A competitive dynamic has remained in recent years, with no new entrants, exits, mergers, acquisitions or privatisations of note. Efforts to improve financial inclusion are under way, however, attempts to grow the banking sector through the mobilisation of domestic resources have been dampened by Algerians’ strong cultural preference for cash and a certain distrust of financial intermediaries. Over the medium term, the end of the monetary financing programme has the potential to add impetus to capital market development, as it is likely to be accompanied by a tightening of bank liquidity and a need for public and private sectors alike to explore alternative sources of funding to bank lending. This chapter contains interviews with Mohamed Loukal, Governor, Bank of Algeria; Brahim Semid, CEO, Banque Extérieure d’Algérie; and Lazhar Sahbani, Partner, PwC Algeria.