2024-11-15 07:00:00
ALGIERS – The number of savings accounts in the banking sector exceeded 12.5 million in the first half of the current year, with a financial envelope approaching 3,700 billion DA, said Thursday the Minister of Finance, Laaziz Faid.
Mr. Faid was speaking at an Information Day entitled “Mobilizing savings in the financial sector: challenges and prospects”, organized as part of the celebration of World Savings Day, in the presence of the Minister of Post and Telecommunications, Karim Bibi Triki, the Minister of the Knowledge Economy, Start-ups and Micro-enterprises, Yacine El-Mahdi Oualid, as well as general managers of banks and CEOs of companies insurance.
In his opening speech during this event organized by the Professional Association of Banks and Financial Institutions (ABEF), in collaboration with the Algerian Union of Insurance and Reinsurance Companies (UAR), the minister specified that data relating to savings in the banking sector for the first half of 2024 indicates that “the number of savings accounts reached more than 12.5 million savings accounts, with a savings envelope of 3.684 billion DA.”
Regarding “the mobilization of savings”, which includes bank savings accounts, term deposits and fund bonds, the figures exceeded 7,600 billion DA in banks, he added .
As for the number of savings cards, it increased to reach 1.8 million cards during the first half of 2024.
The number of bank branches has reached 1,734 since the start of the current year, with 858 Islamic finance branches, thus contributing, according to the minister, to “mobilizing savings and facilitating banking operations by providing branches proximity and innovative services that meet customer expectations.
“This increase can be explained by the measures taken by public authorities to protect and improve the purchasing power of citizens,” said Mr. Faid, affirming that savings play “a vital role in supporting this orientation and contributes to achieving an economic balance favorable to the well-being of society in general.
To develop new tools and frameworks to encourage citizens and businesses to save and facilitate means of safe investment, the minister reaffirmed the government’s commitment to developing an advanced financial infrastructure ensuring an environment conducive to savings and sustainable investment.
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What initiatives is the Algerian government implementing to encourage citizens to save more and utilize formal banking services?
**Interview with Laaziz Faid, Minister of Finance**
**Interviewer:** Thank you for joining us today, Minister Faid. Your recent announcement about the remarkable growth in savings accounts has drawn significant attention. Can you elaborate on the current financial landscape in Algeria that led to over 12.5 million savings accounts?
**Laaziz Faid:** Thank you for having me. The increase in savings accounts reflects not only growing public confidence in our banking system but also our government’s efforts to enhance financial inclusion. We have seen more citizens recognizing the importance of saving, which is crucial for both personal financial security and the overall economic stability of our country.
**Interviewer:** You mentioned a financial envelope approaching 3,700 billion DA. How does the government plan to leverage this substantial amount of savings for national development projects?
**Laaziz Faid:** This significant pool of savings can play a vital role in funding infrastructure projects and stimulating economic growth. We are working on initiatives to encourage banks to offer attractive saving schemes that can be aligned with national developmental goals. This will facilitate investment into sectors that drive innovation and employability, particularly in support of start-ups and micro-enterprises.
**Interviewer:** The event you spoke at also emphasized the importance of mobilizing savings in the financial sector. What are some of the key challenges the government faces in this regard?
**Laaziz Faid:** One of the main challenges is cultivating a culture of savings among our citizens. Historically, many have preferred to keep their money outside of the banking sector due to a lack of awareness or trust. Therefore, we must improve financial literacy and provide incentives to encourage people to deposit their savings in banks rather than informal channels.
**Interviewer:** You were joined by other ministers and financial leaders during the Information Day. How important is collaboration among different sectors in achieving the financial goals you’ve outlined?
**Laaziz Faid:** It’s extremely important. Collaboration is the key to creating a unified approach toward mobilizing savings. By working together with different ministries, banking institutions, and the private sector, we can develop innovative financial products that meet the needs of our citizens and businesses.
**Interviewer:** as we celebrate World Savings Day, what message do you want to convey to the public regarding savings?
**Laaziz Faid:** I want to encourage everyone to view saving not just as a financial habit, but as a foundation for future stability and prosperity. By saving, individuals can not only enhance their own lives but also contribute to the economic resilience of our nation. Together, we can build a stronger financial future for all.
**Interviewer:** Thank you, Minister Faid, for sharing your insights with us today.
**Laaziz Faid:** Thank you for having me.
