The modern approaches for Bank of Algeria supervision in the context of risk adjusting and reducing financial crises - risk based precautionary approach as a model -

Abstract

This study aims to identify the supervisory methods of the Bank of Algeria  and the extent of the development of its mechanisms, and its reliance on a risk-based supervisory approach, within the framework of assessing and managing banking risks to minimise financial crises. The most important findings of the study are that the Bank of Algeria’s supervisory authorities are constantly striving to apply the principles of effective banking supervision, through the early warning system and stress tests based on the Financial Projection Model, in addition to the development of the SYNOBA evaluation system based on on-site supervision, towards a new SREP type of permanent supervision.