Resumen de The reality of the development of islamic banking in algerian public banks

Kahina Chaouchi, Ines Siouda, Hayat Kebaili, Grinat Mohammed

• Objective: The purpose of this research is to examine the reality of Islamic banking in Algerian public banks, its regulatory framework, and its products, as well as to highlight Islamic banking practices within public banks.

    Theorical Framework: The study identified current state of Islamic banking development in Algeria, present its legislative and regulatory framework, and examine its status and evolution within Algerian public banks during the period from 2020 to 2023."   Method: The study employs descriptive and analytical approaches by exploring various theoretical aspects of Islamic banking in Algeria, and then analyzes numerical data and information obtained from reports issued by the Central Bank of Algeria and Algerian public banks.

    Results and Discussion: The results show that Islamic banking in Algerian public banks has experienced positive growth since 2020, with a continuous increase in the volume of Islamic finance deposits over the years 2020–2023. However, this development remains insufficient, as Islamic banking in Algeria faces numerous challenges and obstacles, particularly in the legal and regulatory aspects.

    Originality/Value: This study detailed the reality of Islamic banking in Algerian public banks, particularly following the enactment of Regulation 20-02, which defined Islamic financing models, and Monetary and Banking Law 23-09, which allowed the establishment of Islamic banks and Islamic banking windows within public banks.