"REFORMS AND CHALLENGES OF THE ALGERIAN BANKING SYSTEM IN LIGHT OF ECONOMIC TRANSFORMATIONS" TRACK: ADMINISTRATIVE, ECONOMIC, AND ACCOUNTING STUDIES

The banking system is a crucial foundation for sustainable economic growth, playing a key role in mobilizing savings, financing investments, and maintaining financial stability.In Algeria, the banking sector has undergone a series of important reforms since the 1990s, aimed at modernization and improving efficiency.These changes have been part of the country's shift towards a market economy and alignment with international banking standards.The reforms have focused on liberalizing the banking sector, supporting private banks, introducing electronic payment systems, and strengthening the regulatory framework.However, despite these efforts, the Algerian banking system still faces significant challenges that limit its ability to effectively support economic development.Among the most pressing issues are limited financial inclusion, with a large portion of the population and small and medium-sized enterprises (SMEs) still not fully integrated into the banking system.In addition, the sector struggles with slow digital transformation, a lack of financial innovation, and complex banking procedures, all of which hinder its capacity to meet the needs of the economy.This paper seeks to explore the journey of banking reforms in Algeria, assessing their impact on the performance of the banking sector .The paper will also discuss the opportunities available to the banking sector, particularly in light of digital transformation, the expansion of Islamic banking services, and the growing openness to international financial markets.Finally, the paper offers recommendations to improve the efficiency of the Algerian banking system by speeding up the digitization of services, enhancing the legislative and regulatory frameworks, and adopting new strategies for financing the economy.These measures aim to foster sustainable development, strengthen financial stability, and boost competitiveness both regionally and internationally.