Financial Sector Assessment : Algeria
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Washington, DC
Resumen
Descripción
Over the past decade, Algeria has
courageously attempted to modernize its financial system,
despite social strife, and unique challenges posed by the
large hydrocarbon sector. However, lending by state-owned
banks, mostly to public entities, still dominates financial
intermediation, financial markets remain in their infancy,
and, implementation of regulatory reforms is lagging. And,
because of hydrocarbon-funded state support to borrowers and
lenders alike, the financial system appears stable, although
this "stability" carries high costs, and distorts
risk pricing and governance. The report emphasizes that to
alter these patterns, the authorities should push on
several, mutually reinforcing policy fronts: privatization
of all public banks over the medium term; improvements in
the banking system, namely banking operations, to cut
intermediation costs; stimulate a strong institutional
framework, and regulation of hydrocarbon-induced liquidity
and credit cycles, that curtail banks' risk-taking;
and, undertake longer-term reforms to stimulate the non-bank
financial sector. Nevertheless, the report also stipulates
that privatization should not attempt to recoup past
budgetary outlays, but prevent future ones, and let new
owners decide on investments, and cost cuts. Direct
budgetary support should replace lending to non-viable
State-owned enterprises (SOEs) and financial support to
public programs, such as housing or agriculture. Instead,
the government should consider replacing the current
guarantee subsidies, with direct budgetary financing of
public entities, whereas in managing their housing and
agriculture finance programs, the authorities should
consider alternative methods. Banking supervision, and
prudential regulation need strengthening in many core areas.
The Bank of Algeria (BA) as supervisor, can play a useful
role in the operational restructuring of public banks by
enforcing regulation to gain a firm handle on bank
profitability. But, while the ordinance on Money and Credit
of October 2003 contain some improvements, other provisions
could undermine BA's financial, and operational
autonomy. Financial system stability and development in
Algeria, have strong overtones of public debt, and
expenditure management, because of the policies that
regulate the effects of the oil cycle on bank liquidity, and
credit risks.
Palabras clave
ACCOUNTING, ACCOUNTING STANDARDS, AGENTS, APPLICATIONS, AUDITING, AUTONOMY, BANK LENDING, BANK LIQUIDITY, BANK PRIVATIZATION, BANK RATINGS, BANK RESERVES, BANK RISK, BANKING SECTOR, BANKING SUPERVISION, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY PROCEDURES, BANKS, BROKERS, CAPITAL GAINS, CENTRAL BANK, COMMERCIAL BANKS, COMPARATIVE ADVANTAGE, COMPETITIVE MARKETS, CONTINGENT LIABILITIES, CONTRACTUAL SAVINGS, CONTRACTUAL SAVINGS INSTITUTIONS, CORPORATE GOVERNANCE, CREDIT INSURANCE, CREDIT RISK, CREDIT RISKS, DEBT, DEFAULT RISK, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, EFFECTIVE DEMAND, EXCESS LIQUIDITY, FACTORING, FINANCIAL ACCOUNTING, FINANCIAL DATA, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL INTERMEDIATION, FINANCIAL MARKETS, FINANCIAL POLICIES, FINANCIAL SERVICES, FOREIGN BANKS, FOREIGN EXCHANGE, HOUSING, HOUSING FINANCE, INCOME, INCOME GROUPS, INSPECTIONS, INSURANCE, INSURANCE COMPANIES, INSURANCE FUNDS, INSURANCE PRODUCTS, INSURERS, INTEREST RATES, LAWS, LEGAL FRAMEWORK, LIFE INSURANCE, LIFE INSURANCE COMPANIES, LIQUIDATION, LIQUIDATION VALUE, MACROECONOMIC POLICIES, MACROECONOMIC STABILIZATION, MANAGEMENT CONTROL, MARKET RISK, MERGERS, MICROFINANCE, MONETARY AGGREGATES, MORTGAGE INSURANCE, MOTOR INSURANCE, MUNICIPALITIES, NET WORTH, NEW ENTRANTS, NON-LIFE INSURANCE, NONPERFORMING LOANS, OIL, OPERATING COSTS, OPERATING EXPENSES, PENALTIES, PENSION FUNDS, PORTFOLIOS, PREMIUMS, PRIVATE BANKS, PRIVATIZATION, PRODUCTIVITY, PROFITABILITY, PROGRAMS, PROPERTY RIGHTS, PRUDENTIAL REGULATION, PRUDENTIAL REGULATIONS, PRUDENTIAL REQUIREMENTS, PUBLIC DEBT, PUBLIC ENTERPRISES, REGULATORY FRAMEWORK, REINSURANCE, RESOURCE ALLOCATION, SAVINGS, SECURITIES, SECURITIES MARKETS, SETTLEMENT SYSTEMS, SHAREHOLDERS, SMALL BANKS, SOCIAL SERVICES, SOLVENCY, STATE BANKS, STATE GUARANTEES, STOCK PRICES, TAXATION, TRADING, TRANSACTION COSTS, TRANSPARENCY, VOLATILITY, WORKING CAPITAL FINANCIAL SECTOR REFORM, STATE-OWNED BANKS, STATE-OWNED ENTERPRISES, PRIVATIZATION, HYDROCARBON RESOURCES, PUBLIC SECTOR MANAGEMENT, BANKING SYSTEMS, BANKING RISK MANAGEMENT, BANK SUPERVISION, BANKING REGULATIONS, PUBLIC FINANCE, GUARANTEES, SUBSIDIES, OPERATIONAL INTERVENTIONS, RESTRUCTURING, FINANCIAL MANAGEMENT, PRUDENTIAL REGULATIONS, PUBLIC DEBT, PUBLIC EXPENDITURES, REGULATORY FRAMEWORK, OIL SUBSIDIES, BANK LIQUIDITY, CREDIT RISK PREMIUM, INSTITUTIONAL FRAMEWORK