Rules for establishing and licensing banks and financial institutions in Algerian Legislation: A review of the rules for establishing and licensing banks and financial institutions in Light of Regulation No. 24-01 defining the conditions for licensing the

Abstract

This study aims to clarify the legal provisions that define the legal and technical conditions and procedures for establishing and licensing banks and financial institutions in Algeria. These provisions form the cornerstone of the regulatory and supervisory framework governing banking operations, which banks and financial institutions are exclusively authorized to conduct. The legal basis for these provisions is found in the principles and rules of monetary and banking law, as well as in Regulation No. 24-01, which sets out the conditions for licensing the establishment of a bank or financial institution and their accreditation. Additionally, these institutions must comply with specific legal conditions and procedures. The study concludes that the Algerian legislator has established licensing and accreditation as fundamental requirements for founding an entity engaged in banking operations. The licensing process is a preliminary measure assessed by the Monetary and Banking Council through a formal decision. Accreditation, on the other hand, follows the licensing process and is granted by the Governor upon fulfilling the applicable legal and regulatory requirements, as well as strict compliance with technical establishment standards and recommendations associated with the licensing decision. The accreditation decision grants the applicant the status of a bank or financial institution, as appropriate.