Relationship of the Algerian central bank with the Islamic banks operating in Algeria – A case study of Al Salam Bank in Algeria


October 10, 2016
Relationship of the Algerian central bank with the Islamic banks operating in Algeria – A case study of Al Salam Bank in Algeria
Professor Maddah Abdel Basit and Professor Azuz Munir

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Issue

Islamic banking is one of the most important banking system components. Especially among countries which realized the necessity to adopt this type of banks within its funding system. Given for being as a pot of the absorption and utilization of depositors who avoid dealing with the traditional banks In addition to the achievement of the objectives of a totalitarian character consistent with the goals of the state. In this context, a relationship grew up in a two-way between the monetary authorities and this type of banks. which is rather a response to the urgent need of organizing ways and tools to deal with the two sides with focusing on the condition that the central bank retains its authority and control guidelines of the Islamic Bank directly or indirectly through monetary and financial policies, and it may resorted to islamic bank Such as the borrower in special cases .On the other hand, the Islamic Bank faces many challenges and obstacles although its being a source of security and confidence to customers and its contribution in the provision of development requirements (great facilities for investment projects) Particularly with respect to the contradiction of many methods of control with its principles, Therefore, it is necessary to adjust the various procedures and standards for banking supervision as consistent with the provisions of Islamic Sharia. Key words: Central Bank, Islamic banks, Algerian banks

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