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|b Most of the changes, developments, features and reflections concerning Globalization have a great worldwide impact on the Banking Industry in any country, of which the Algerian banking industry. Whereby, the economic impact of globalization on the Banking Industry may be positive and negative as well. The basic impacts represent restructuring of the banking industry and the transformation to the comprehensive banks, re-engineering the banking industry towards the financial derivatives as well as necessarily complying with Basel accords that manifesting competitive banking system after the Financial Services Liberalization Agreement, banking merger, and weakening the power of the Central Bank to manage the monetary policy. This study surveys efforts of the Arab Central Banks’ reform policies e.g. Egypt Central Bank, Jordan Central Bank and, Central Bank of Sudan, along with the efforts by the International Monetary Fund to help the national banks to face the requirements posted by Globalization and International Competition. Moreover, the study also stated discussed the challenges facing the Algerian Banking System in the Globalization era, thus, it surveyed its historical developments and the current structure. It also analyzed some of the available information along with evaluation the reform policies that were implemented by the Algerian Central Bank. It detected the strategic requirements for the Algerian banks in the context of globalization in form of Institutional building suitable for activating the competition and building strategic coalition and financial engineering. Along with this survey, the study recommended that the Algerian Banking System should necessarily benefit from the current situation whereby, no limits and restrictions when it does business with its national external clients, to work forward to know the market requirements and the nature of competition facing it. In addition to that, it needs to build clear strategies for domestic and international markets, empowering the financial resources via increasing capital, merge of small and weak banks to create giant effective ones, working towards to qualify the human resources through training suit with the updating and developing recent banking industry and, improving the financial inspection procedures and increase its confidence.
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