The Competitive Stratification Of Islamic Banks In Algeri

Abstract

This study endeavors to scrutinize the competitive dynamics between conventional and Islamic banking institutions by conducting a methodologically grounded comparative examination of Al Baraka Bank Algeria vis-à-vis privately owned conventional banks operating within the Algerian financial ecosystem over a five-year period (2015–2019). The empirical scope of this investigation encompasses a sample comprising four privately held conventional banks juxtaposed against Al Baraka Bank as a representative entity of Islamic financial intermediation within the Algerian banking sector. The findings substantiate the premise that Islamic banking is undergoing a trajectory of sustained evolution, manifesting significant enhancements in operational efficiency. This upward trajectory has, in turn, reinforced the competitive positioning of Islamic banks, augmenting their capacity to contend with privately owned conventional banking entities within the Algerian financial landscape