Analysis and Evaluation of Financial Soundness Indicators of the Algerian Banking Sector During the Period 2015–2024

Abstract

This study aims to provide an analytical and evaluative assessment of the evolution of financial soundness indicators in the Algerian banking sector over the period 2015–2024. It examines the main indicators related to banks’ solvency, liquidity ratios, non-performing loans and provisioning rates, bank profitability indicators, and banking intermediation margins, with the aim of assessing the soundness of the sector and identifying its main strengths and weaknesses.

To achieve this objective, the study employs a descriptive-analytical approach based on the analysis of annual data on financial soundness indicators, their statistical analysis, and the examination of their trends over the study period. Temporal comparisons are also conducted to interpret the financial implications of these indicators.

The results reveal that the Algerian banking sector experienced a noticeable improvement in solvency and profitability indicators, while challenges related to non-performing loans persisted. The study concludes that the financial soundness of the Algerian banking sector improved across certain dimensions, particularly with regard to solvency and profitability indicators.