This article aims to highlight one of the aspects related to the study of the role of knowledge in improving the performance of banks in Algeria. The importance of the study is highlighted by addressing an issue centered on estimating the extent of the impact of knowledge management on the levels of financial performance of a sample of banks operating in the regions of Touggourt and Ouargla (Algeria). For this purpose, and by using a questionnaire, we provided analysis and reading of the outputs of the field study through descriptive statistics and linear regression, followed by testing hypotheses. The study concluded that there is no direct priority for the research and development process, nor importance for the suggestions and ideas presented by the employees. Rather, banks are interested in using what has been developed in the field of banking and training to be learnt by their employees. Although varying results were distinguished in the extent of the impact of knowledge management processes, the study demonstrated that there is a statistically significant impact of generation and diagnosis, sharing, and application of knowledge on the financial performance of commercial banks.