In a new phenomenon that threatens Algerian banks, citizens prefer home savings to put their money in banks as usual.

 

The loan manager at the Bank of Algeria, Mohamed Koubi, said that the percentage of savings outside the banks amounted to 31 percent of the total funds traded in Algeria.

 

This figure is equivalent to 428 billion dinars, or 42,800 billion centimes, of the total cash flow of KD 1380.6 billion.

 

This comes at a time when the banking system in Algeria will adopt in the coming weeks a new system that defines participatory financing as a new step to attract resources that are saved outside banks.

 

According to the Algerian newspaper "Sunrise" that the stated rate represents 428 billion dinars, considering that the cash mass reached the end of last year to the extent of 1380.6 billion dinars, following the adoption of unconventional funding and the process of printing banknotes.

 

According to the report, the Bank of Algeria's report included a clear indication of the weakness of traditional banking resources, which has forced the Bank to seek resources by diversifying and adapting savings and financing products to meet the needs of all groups, both clients and citizens.