Digital Banks In Algeria: A Comparative Study On The Mechanisms Of Establishment And Conditions Of Practice

Abstract

This article analyzes the modern legal framework for digital banks in Algeria, focusing on Regulation No. 24-04 issued by the Bank of Algeria. The study examines the establishment mechanisms, which mandate a minimum 30% local banking shareholding and prohibit foreign branches, emphasizing the purely digital nature of these institutions. Furthermore, the article discusses operational and supervisory conditions, particularly cybersecurity requirements and the mandatory "Exit Plan." Through a comparative study with Egyptian legislation and international experiences, the article concludes that the Algerian legislator has adopted a conservative model aimed at ensuring financial stability and transferring traditional banking expertise to the digital environment. It recommends reviewing capital requirements to further encourage innovation.