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Algeria banking system under international financial institutions scrutiny


Algeria bank governor Mr. Mohamed Laksaci unveiled yesterday that a joint delegation from the IMF and the World Bank is visiting Algeria in order to assess financial stability indicators. The delegation is to visit Algeria next June in order to elaborate a detailed report on banking system in Algeria. At the mean time, IMF representative called to the need to settle surplus in bank cash and tighten control over foreign bank subsidiaries. He warned that state owned banks are not spared even if private ones are more vulnerable to shakes.
During the meeting of Africa central banks on bank control organized in Al Aurassi Hotel Algeria bank governor made clear that there are increasing banking risks the fact that reinforced the tendency towards an attempt to adopt Bale commission caution rules.
On this ground, the joint delegation visited Algeria in an attempt to define strong and weak points in terms of risk management, bank control and loan policies.
The delegation is to visit Algeria next June before submitting an exhaustive report on Algeria Bank relation with monetary market and other international banks.
On another side IMF Representative Mr. Sean Craig Monetary and Exchange Affairs Department head put in review main indicators on which financial stability indicators assessment rely.
The international expert stressed that cash surplus means not that banks are spared, it rather enshrines a problem in loan efficiency and a lack of trust among savers.
The international expert further warned that state owned banks are not spared by shakes affecting the most private ones as they are not backed enough while the state covers public bank deficit through recapitalization.
IMF representative revealed that new measures are to be adopted in order to tighten control over foreign bank subsidiaries especially when it comes to financial flows and loans.
http://www.elkhabar.com/FrEn/lire.php?ida=67072&idc=52