The effectiveness of previous administrative control over the establishment of banks and banking institutions, including licensing and accreditation

Abstract

This study deals with a type of supervision over banks and financial institutions. This study deals with a type of supervision over banks and financial institutions, which is represented by prior administrative supervision that includes procedural measures: granting the licensing decision and the accreditation decision, which was approved by Law N° 23-09 on the monetary and banking Law, as well as regulation N°24-01 about the conditions for licensing the establishment of a bank or financial institution, and its approbation, and the regulation N° 24-02 determining the minimum capital for banks and financial institutions operating in Algeria; This will be done by addressing all the procedures required to grant these two licenses, and the consequences of violating their conditions.

Through this study, we concluded that the procedures for accrediting a bank or financial institution are preventive supervisory measures in order to protect in this sensitive sector, which is linked to the state’s financial system.