Banking
From The Report: Morocco 2013
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While growth at some banking institutions slowed in 2012, due mainly to the pressures of exogenous slowdowns, the sector has remained largely resilient due to prudent regulation by the central bank. The country’s banks posted aggregate net income of €3.2bn in 2011, a 9% increase over €2.9bn in 2010, which translated to 4% growth in net income that year. The government is now grappling with rising fiscal and current account deficits, which became more severe in 2012 due to lower revenues from agriculture and tourism, the country’s main sources of income. To address tightening levels of liquidity, the central bank has cut reserve requirements and approved certificates of deposits. Meanwhile, new regulations set to come into effect will allow for the operation of fully fledged Islamic banks in the kingdom.

This chapter includes interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Mohamed El Kettani, CEO, Attijariwafa Bank.

Articles from this Chapter

Overview

A steady hand: Cash injections by the central bank kept financing strong amid a liquidity crisis
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The growth of Morocco’s 19 banks slowed recently, with some indicators weakening. Overall, though, the sector continued to put in a resilient performance thanks to prudent regulation by the central bank, Bank Al Maghrib. The pressures brought about by exogenous slowdowns reduced liquidity, as domestic activity and trade volumes dipped, but a conservative exchange rate regime and steady expansion in African frontier markets over recent years has helped steady Moroccan banks’ balance sheets.…

Interview

OBG talks to Mohamed El Kettani, CEO, Attijariwafa Bank
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Interview: Mohamed El Kettani In what ways are developments in the banking sector helping to facilitate economic growth? MOHAMED EL KETTANI: Growth in 2012 is set to be approximately 3%, which is an acceptable rate given the economic context. In 2013 growth in loans is expected to be higher than 4.5%. The increase of financing to small and medium-sized enterprises (SMEs) has lately been higher than that of deposits, demonstrating efforts by banks to support the growth of the real economy. In fact,…

Analysis

From the ground up: New legislation promises to introduce more Islamic finance options
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Islamic finance is set to take root in Morocco after a new banking law is passed by parliament, currently anticipated for spring 2013. The law allows fully fledged Islamic banks, with up to 49% foreign shareholding, and institutes regulations on a number of Islamic finance products. It will also include legislation on securitisation – an amendment that would open the Casablanca Stock Exchange to sharia-compliant bonds, or sukuk, which is expected to raise activity on the bourse. EXISTING…

Analysis

Banking on entrepreneurs: Small businesses are being offered unprecedented support
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As seen in many emerging markets around the world, Morocco’s small and medium-sized enterprises (SMEs) play an important role in the national economy. Although they account for nearly half of employment and over 30% of GDP, the country’s SMEs often suffer from poor access to finance; currently receiving just under a third of total credit. SMEs’ overall contribution in terms of added value to the economy represents only 20%, due in large part to structural constraints that limit both their…