LA RÉTICENCE DES BANQUES ALGÉRIENNES À FINANCER LES PME: FACTEURS DE BLOCAGE ET PERSPECTIVES
RELUCTANCE ALGERIAN BANKS TO FINANCE SMES: LOCK FACTORS AND OUTLOOK

Summary/Abstract: In Algeria, one of the main difficulties faced by most entrepreneurs is the lack of access to finance, despite of the excess liquidity in the domestic banking system. Banks are perceived as not willing to take the credit risk when they are not fully insured. The presence of collateral appears as a necessary condition for obtaining the credit, it sometimes exclude many SMEs, who do not posses sufficient financial resources. The objective of this paper is twofold: to understand from the survey findings of state banks that when the capacity of credit supply is important and why the national economy is being little funded; then envisage reforms in order to remove impediments regarding SMEs' access to capital, which will encourage national banks to finance more for investment.

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