BANQUE D'ALGéRIE

The Central Bank of Algeria Headquarters adress : 38, Avenue Franklin Roosevelt, Sidi M'Hamed, Alger 16000 was established by Law No. 62-144 passed by the Constituent Assembly on December 13, 1962, which created and defined the statutes of the Central Bank. Amendments were made during the 1970s and the early 1980s. However, reform of the financial system, both in terms of management and responsibilities, became imperative. Law No. 86-12 of August 19, 1986, concerning the regime of banks marked ... the beginning of the overhaul of the Algerian banking system. Consequently, the Central Bank regained prerogatives in defining and implementing monetary and credit policies, while its relationship with the Treasury was revised. These adjustments, however, proved to be poorly suited to the new socio-economic context marked by profound reforms. Law No. 90-10 of April 14, 1990, as amended and supplemented, relating to currency and credit, is the first comprehensive law that regulates and defines the Central Bank and the Algerian banking system. Subsequently, Ordinance No. 03-11 of August 26, 2003, concerning currency and credit, was promulgated with the aim of repealing Law No. 90-10 of April 14, 1990. This law grants broad autonomy, both organizational and functional, to the Central Bank, now referred to as the Bank of Algeria. The management, administration, and supervision of the Bank are respectively ensured by the Governor, the Board of Directors, chaired by the Governor, and two censors. The Board of Directors is composed of three Vice-Governors and three senior officials appointed for their expertise in economic and financial matters. The Governor is appointed by presidential decree, and the three Vice-Governors are appointed under the same conditions. Other members of the Board of Directors are appointed by executive decree. Censors are appointed by presidential decree, upon the proposal of the Minister of Finance. The Board of Directors enjoys the typical prerogatives recognized for such an organ. Ordinance No. 03-11 of August 26, 2003, concerning currency and credit, established a deliberative body called the Monetary and Credit Council, which serves as the monetary authority, setting monetary objectives, determining the conditions for the approval and creation of banks and financial institutions, and issuing regulations on standards and ratios applicable to banks and financial institutions, among other things. The same ordinance established a body called the Banking Commission, which serves as the authority responsible for monitoring compliance by banks and financial institutions with legislative and regulatory provisions and for sanctioning observed violations. As part of a process of socio-economic and financial reforms already initiated by the public authorities, Law No. 23-09 of Dhou El Hidja 1444 corresponding to June 21, 2023, on monetary and banking law was enacted, repealing Ordinance No. 03-11 of August 26, 2003. The law aims to adapt the legal and regulatory framework to respond to profound economic and financial changes, technical and technological challenges, and enable the entry of new actors. It notably provides for the strengthening of the governance of the Bank of Algeria, the Monetary and Banking Council, the Banking Commission, and that of banks and financial institutions.More