Financing of Businesses and Households in Algeria: The Management of Institution-Customer Relationship

This paper aims to highlight the interactions between the different financing methods existing in Algeria, namely: bank credit, leasing, and equity investments, as well as credit guarantee funds. In addition, it examines the use of these financing methods with the businesses and households’ segments. An interaction to be verified on this paper to have a whole idea of the relationship between the financing methods and the customer segments existing in the market. The approach used consists of creating and examining sharing maps related to these activities. The construction of these maps is based on the participation of a financing institution in Algeria in another institution whose nature of activity is similar. which can be competitive, with potential conflicts of interest between the parties involved. According to this study, financial institutions in Algeria collaborate with two categories of clients, namely businesses and households. The collaboration between these entities explains both the substitution and complementarity between the different forms of financing studied in this paper. In an equation comprising four variables: banks and the other financing institutions studied, businesses, and households. A significant weight of the financing methods currently existing in Algeria is reserved for businesses. Whose financing needs are varied and complex, and the choice of the financing method depends essentially on the requirement of the company. Unlike households, whose credits are simple.