Bank services to substitute bank loans

The Algerian Bank gave the go ahead for all the banks and other financial institutions to offer their clients special monetary services, but in order to minimize the risks when dealing with new products a prior permission from the Algerian Bank is required. The Algerian Bank established a brand new system that sets the rules that regulate the financial transactions of the banks and other financial institutions when dealing with their clients as stipulated in the order issued in August 2003 in relation to credits and financing.The text reads” Banks and financial institutions can suggest to their clients special monetary services or exceptional funds, but to minimize the risks and for an effective evaluation of the risks each new product on the market is subject to the Algeria Bank prior permission”The Algerian Bank has indicated that “ banks and other financial institutions are entirely free to set their own credit rates” but the Algerian Bank can set its own benefit rate and the banks and the financial institutions are not allowed to go, beyond this limit”.Banks have to inform their clients about the requirements applied on the financial transactions and must compensate the customers for any delay during the operation