دفاتر البحوث العلمية

Bank Governance As A Tool To Enhance Financial Stability And Manage Liquidity Risk In Algeria: An Analytical Study Of A Sample Of Algerian Banks

Auteurs : Boudjabeur Nesrine . Boukabous Meriem .

Résumé

This study aims to highlight the role of banking governance mechanisms (Board of Directors, specialized committees, and independence) as a proactive tool for mitigating liquidity risks within the Algerian banking system. To achieve this objective, the study employed a descriptive-analytical approach for the theoretical framework and a case study methodology for the empirical part. Data from a sample of six banks (CPA, BNA, Al Baraka, Al Salam, Fransabank, and BNP) were analyzed for the period spanning from 2018 to 2022. The study concluded that there is an apparent positive association between governance structures and liquidity indicators. The descriptive comparison indicated that banks characterized by high independence and a diversity of supervisory committees (such as Al Baraka Bank) maintained high liquidity averages exceeding 50%. Conversely, banks showing gaps in the activation of risk committees recorded the lowest liquidity levels. Furthermore, the study revealed a discrepancy in the application of governance between the public and private sectors, emphasizing the necessity of activating oversight roles to ensure financial stability under the Bank of Algeria Regulation No. 16-03.

Mots clés

Banking Governance, Liquidity Risk, Algerian Banks, Bank of Algeria, Regulation 16-03, Risk Committee