The Role Of Banking Activities In The Algerian Economy

Abstract

In Algeria, it is widely accepted today that there is an urgent need to diversify the economy to move from exogenous growth based on hydrocarbon revenues to endogenous growth based on a supply of various products and Services. By positioning ourselves on this axis, our work analyzes the role of the reformed banking system in the Algerian economy In this present work, we have to detect a possible impact of banking activities on economic growth in Algeria. To do this, we calculated a range of ratios, then we used the VECM technique, for the period 1990/2021, using banking variables in this case quasi-money and credits to the economy. Our study reveals a weak involvement of the banking system in the economy compared to certain strategic activities such as exports