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Algeria says HSBC wins permit to start local bank
ALGIERS, May 27 (Reuters) - Algeria's central bank has decided to permit HSBC , Europe's largest bank, to set up an Algerian bank, state-owned newspaper El Moudjahid reported on Sunday.
A central bank statement reprinted by the newspaper said: "The bank's money and credit committee, after deliberations, has decided to permit the establishment of the HSBC Algerie bank."
The bank would have an authorised capital of 2.5 billion dinars ($35.46 million), which will be increased in the third year to 3.67 billion dinars, it said without elaborating.
"This demand for a banking permit confirms once again the interest internationally-renowned banks have in the Algerian market," it said.
At the moment HSBC is represented in Algeria through the British Arab Commercial Bank Limited, an associate company of HSBC in which HSBC has a 46.51 percent stake.
Algeria has six state-owned banks, which own 90 percent of total assets and loans of the banking system, and a handful of small private banks which focus on financing imports.
Foreign banks including BNP Paribas, Societe Generale , Citibank and Arab Banking Corporation are also present in the market.
The north African OPEC member country earned more than $50 billion from oil and gas exports in 2006 and has foreign exchange reserves of about $80 billion. ($1=70.5 Algerian dinars)
A central bank statement reprinted by the newspaper said: "The bank's money and credit committee, after deliberations, has decided to permit the establishment of the HSBC Algerie bank."
The bank would have an authorised capital of 2.5 billion dinars ($35.46 million), which will be increased in the third year to 3.67 billion dinars, it said without elaborating.
"This demand for a banking permit confirms once again the interest internationally-renowned banks have in the Algerian market," it said.
At the moment HSBC is represented in Algeria through the British Arab Commercial Bank Limited, an associate company of HSBC in which HSBC has a 46.51 percent stake.
Algeria has six state-owned banks, which own 90 percent of total assets and loans of the banking system, and a handful of small private banks which focus on financing imports.
Foreign banks including BNP Paribas, Societe Generale , Citibank and Arab Banking Corporation are also present in the market.
The north African OPEC member country earned more than $50 billion from oil and gas exports in 2006 and has foreign exchange reserves of about $80 billion. ($1=70.5 Algerian dinars)