2023-05-08 12:56:48
ALGIERS- The Minister of Finance, Laziz Faid presented, Monday, before the members of the Council of the Nation, the text of the monetary and banking law which tends to strengthen the governance and the prerogatives of the Bank of Algeria (BA), the Currency and Credit Council (CMC), Banks and Financial Institutions.
During a plenary chaired by the President of the Council of the Nation, Mr. Salah Goudjil, in the presence of the Minister for Relations with Parliament, Basma Azouar, Mr. Faid indicated that the in-depth revision of the text of the monetary and banking law is now “necessary, due to the evolution of the banking environment and the macroeconomic situation, inducing significant challenges in terms of the definition of monetary policy, technological progress, risk control and regulation of the profession “.
This text of law repealing Ordinance No. 03-11 of August 26, 2003 relating to money and credit, as amended and supplemented, is part of the “reforms initiated by the public authorities and the restructuring of the banking and in Algeria, in order to adapt it to developments in the global economic system and better meet the requirements of the expected economic reform”.
This “profound revision” tends, adds the minister, to strengthen the governance and transparency of the banking system, the Bank of Algeria in the lead, by giving the CMC new prerogatives allowing it to support the transformations that the banking ecosystem is experiencing. , by extending its prerogatives in terms of licensing digital banks, payment service providers and independent brokers, by authorizing the opening of foreign exchange offices and by strengthening the role of the Banking Commission as a supervisory authority .
This commission is, according to the details of the Minister, the only control authority empowered to rule on violations of the provisions of this law and its clauses, with regard to exposure to risks, in particular credit risk and acts resulting management.
It is also a question of strengthening the organizational and control missions of the institutions and of complying with the practices of central banks and control institutions at the international level.
The establishment of a new legal framework governing monetary and banking activity, in application of the commitments of the President of the Republic, Mr. Abdelmadjid Tebboune aimed at introducing major reforms in financial governance in Algeria, has just adapted the banking system to the economic, financial and technological transition that Algeria is experiencing and to respond to the new challenges posed, recalled Mr. Faid.
In this context, the Minister reviewed the different stages of the drafting of laws governing banking activity in Algeria, which have undergone several modifications since the beginning of the 1990s in order to be in tune with the economic and financial changes in the country.
Law N86-12 of August 19, 1986 relating to the banking and credit system contributed to establishing the rules for the supervision of banking activity, particularly with regard to credit, to be subsequently repealed by law N90 -10 of April 14, 1990 which devoted the autonomy of the Bank of Algeria and the introduction of banking regulations in accordance with the rules of the market economy.
Subsequently, Law N90-10 was updated by virtue of Ordinance N 03-11 of August 26, 2003 relating to money and credit, in order to strengthen the conditions of control of banks and financial institutions, and to put in place more precise surveillance, information and alert mechanisms.
The provisions of this law will promote economic recovery through the strengthening of financial inclusion, the diversification of sources of financing of the economy and the development of the financial market, underlined the Minister of Finance.
Members of the National People’s Congress (NPC) had unanimously adopted the Money and Credit Bill, with the introduction of more than 30 amendments, mainly relating to the strengthening of Islamic finance and the extension the duration of the mandate of the governor of the Bank of Algeria and of the vice-governors to achieve the stability of the Bank of Algeria.
It was also proposed the introduction of a new article 13 bis which provides for the taking of the oath by the governor of the Bank of Algeria and his vice-governors.
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