The Impact of Strategic financial planning on the Financial Performance of Commercial Banks: Evidence from Algerian Banks Using Structural Equation Modeling (SEM)

This study examines the impact of Strategic financial planning on the financial performance of commercial banks in Algeria.Data collected from bank employees were analyzed using exploratory and confirmatory factor analyses within a structural equation modeling (SEM) framework.The results reveal a strong and positive relationship between strategic financial planning and financial performance, highlighting the importance of effective planning in enhancing profitability, liquidity, and operational efficiency.The study underscores the role of Strategic financial planning as a key management tool and provides evidence for its integration into banking practices to support financial stability and sustainable performance.The banking system has undergone profound transformations that have significantly expanded the scope of banking activities and increased the complexity of financial operations.Banks are no longer confined to the traditional roles of deposit mobilization and credit provision ; rather, they have evolved into comprehensive financial institutions that play a vital role in supporting economic growth, enhancing financial intermediation, and providing diversified banking and financial services within highly competitive environments.