Assessing the Performance of Islamic Banking in Algeria After the Implementation of Regulation N° : 20-02: A Statistical Analysis of Growth and Market Concentration Indicators (2021–2025)

Abstract

This study aims to analyze the performance indicators of Islamic banking in Algeria following the implementation of Regulation No. 20-02 over the period 2021–2024. It adopts a descriptive-analytical approach based on statistical data extracted from the annual reports of the Bank of Algeria. The findings reveal sustained growth in Islamic deposits and financing, accompanied by an expansion in the institutional presence of Islamic banking, while financing remained highly concentrated in Murabaha, Salam, and Ijarah contracts. Furthermore, market share analysis and the Herfindahl–Hirschman Index (HHI) indicate a gradual decline in market concentration due to the increasing participation of public banks, although private banks continue to dominate the market. The study concludes that Islamic banking in Algeria has achieved significant quantitative progress; However, strengthening its developmental role requires greater product diversification and enhanced competition within the banking sector.