Abstract

The recent crisis has attracted much interest on the part of economists and prudential authorities. It resembles in some aspects: over-indebtedness widespread panic caused by the sharp devaluation of financial assets, poor management and prediction of crises by the prudential rules of Basel II. The Algerian banking authorities are engaged in a series of reforms of independence till the nowadays, to modernize their banking sectors. They include reforms to the restructuring of the liberalization and privatization of public banks, the establishment of prudential laws and systems of risk management and the strengthening of the powers of supervision. The aim of this article is to learn about the adequacy of the Basel agreements to achieve the basic ideas of reducing risks, stabilizing the financial sector, and maintaining its level of efficiency. Add to, the central idea is to show that our commercial banks are under the obstacle of the presence of the State in a very strong way in the shareholders of the banks, which weakens the regulatory governance. This obstacle more other political constraints preclude the application of the second Basel accord. This was done by first evaluating the different Basel agreements imposed internationally to banks by the Prudential Basel Committee authorities to avoid crises or at least prevent. Secondly the situation of Algerian bank compared to us neighbors and they are forced or the reasons for the slowness with the monetary authorities for the application of the agreement Basel 2, and finally analysis of some banks soundness indicators to measure the efficiency of the Algerian banking sector for the period from 2000 to 2021. The finding revealed that us to point out that they are improving for some and a slight decline for other. An analysis of the development of deposits by institutional sector appears at the end of December 2020 a decrease of -13.2% for deposits collected with public institutions and after government agencies, after the recorded height increased by 7.6% in 2018 and -2% in 2019 and 2020. These deposits moved from 3689.1billion dinars at the end of 2019 to 3202.5 billion dinars in 2020 and 3885.2 billion dinars in 2021.It also represents 33.9% of the total bank deposits collected compared to 39.3% at the end of 2019.This decline is due to the significant decrease in demand deposit for public institutions by (-18%) at the end of 2020, compared to a decrease of (-19.7%) at the end 2019. The Algerian economy’s indicators, it can be said temporarily because Algeria’s economy is rentier. In 2022, it has been expected that, the current account balance posts its first surplus since 2013 and international reserves have risen, stopping the constant downward trend of recent years. Similarly, A fiscal surplus is projected in 2022 reflecting windfall gains from hydrocarbon revenues and a significant under-implementation of budget spending, resulting from the global recovery and the war in Ukraine. The economic recovery strengthened, with non-hydrocarbon GDP growth projected to accelerate to 3.2% in from 2.1%.

Keywords: Algerian banks, Basel agreements, banks’ soundness indicators, corporate governance, efficiency of the Algerian banking sector, financial stability of banks.

JEL Classification: G3.

Cite as: Habiba, M. (2023). Basel Agreements in the Efficiency of Algerian Banks Financial Evolution and Interdisciplinary Research. Financial Markets, Institutions and Risks, 7(1), 123-135. https://doi.org/10.21272/fmir.7(1).123-135.2023

This work is licensed under a Creative Commons Attribution 4.0 International License

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