The Effect of the 20-02 Regulation on The Algerian Islamic Banking Sector: Study On the Role of The New Regulation in Achieving Financial Inclusion

Abstract

Our descriptive research aims to measure the effectiveness of the regulation 20-02, in complementary with the instruction 03-20 of the central bank, to reform the Islamic banking sector, and it effect on its capabilities to integrate the parallel market economies into the official one, and achieve financial inclusion. This regulation will enhance the sharia-performance of those banks, and contributes to its ability to attract 6140 billion da the monetary masse outside the banking, especially that before the regulation, Islamic banks realise a higher deposits growth rate compared to its conventional peers. but it’s too soon to judge the effect of the regulation on the parallel market, especially if we know that according to the Global Findex 2017 report only 5% of Algerians are unbanked for religious reasons, and for that we need an in-depth analysis of the real reasons that contribute to the expansion of the Algerian parallel market.