Algerian Finance Minister Laaziz Faid has announced the creation of a subsidiary of the External Bank of Algeria (BEA) in France and a bank in Mauritania, the result of a shareholding of four Algerian public banks. This initiative is the result of the government program aimed at strengthening the Algerian banking presence abroad, a strategic decision both politically and economically.
Indeed, the BEA is about to open a subsidiary in France while the Algerian bank in Mauritania should open its doors in July. The four Algerian public banks that have invested in the Mauritanian bank are BNA, CPA, BEA and BADR.
Moreover, the Banque Algérienne Sénégalaise, which is made up of these same four shareholders, obtained the approval of the Senegalese authorities last April to become the first Algerian public bank to be approved abroad. It should begin its activities with a capital of 100 million dollars before next September.
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Furthermore, the Minister also mentioned the prospects for the development of the banking network and the opening of branches in the newly created wilayas. He also recalled that the national banking network currently has 1,992 branches and that the banks have recommended to the Bank of Algeria to open local banks that do not require large investments and do not submit to the same conditions as the other agencies. Banks that do not yet have branches in the new wilayas are looking for land in collaboration with the local authorities in order to set up branches there as soon as possible.
Granting of investment credits
Active banks, public in particular, granted more than 11,000 billion DA in investment credits to the public and private sectors at the end of 2022. The Minister recalled that the processing time for credit applications has been reduced to one month. at most. This measure is being implemented in parallel with the launch of projects to digitize loan applications and the development of an internet monitoring system for these applications.
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To conclude, the creation of these banking subsidiaries abroad is part of the Algerian government’s desire to strengthen the presence of Algerian banks on the international scene. This strategic initiative aims to improve trade between different countries and strengthen economic cooperation between Algeria, France and West African countries. The prospects for the development of the national banking network are also encouraging with the forthcoming opening of branches in the newly created wilayas.
