The Impact of Utilizing the Bank of Algeria's Big Data on Forecasting Algerian Banking Stability via the Z-score Model (2009–2023)

Abstract

The aim of this study was to determine the degree of stability of the Algerian banking system during the period 2009–2023. To achieve this, the z-score  method was used, based on big data compiled on the Bank of Algeria’s website, which serves as a source of open data.
The results of applying the Z-score indicator have shown that the Algerian banking sector’s profits would need to fall by a factor of 70.45 times the standard deviation before equity is completely eroded, which would mean an inability to meet financial obligations. This suggests that the Algerian banking system enjoys an acceptable degree of stability, as it remains far from the risk levels associated with default or bankruptcy.