The dissertation looks at the banking Algeria banking sector. The country requires good financial market to complement the rapidly growing economy. The Algeria banking sector has remained underdeveloped despite the restructuring effort that has been made from early 1990s. The country lacks modern financial services as compared to other developing nations within the same level of the economy. This has been contributed by the state economic policies that are geared towards the need of public enterprises, many of which are loss making. The paper looks at the financial issues and gives a recommendation.