Macroeconomic stability, a thriving private sector, and a pivotal location bridging Europe and Africa have helped cement Morocco’s position as a major continental financial hub. By African standards, the kingdom’s capital markets are relatively deep, liquid and sophisticated. Recent years have seen challenges arise on all of these fronts, however. Against a backdrop of subdued economic…
With the world digitalising at an increasing rate, the threat of cybercrime has risen dramatically in recent years, and emerging markets are no exception. While the shift towards online platforms – along with the development of the internet of things, smart cities and blockchain technology – is generating significant opportunities for wealth creation and helping to raise efficiency, it…
The three decades before the 2007-08 global financial crisis were marked by the world’s financial networks becoming increasingly interconnected. Financial system regulatory convergence, the growing penetration of World Trade Organisation rules and the creation of currency unions, such as the euro, resulted in a surge in cross-border capital flows. Global banks began to see the emergence of…
In recent years Morocco’s banking sector has experienced a period of consolidation at home and expansion abroad following a surge in lending in the decade leading to 2012. The country’s leading banks are now among the largest in Africa, with extensive continent-wide holdings. Despite GDP growth trending lower and the associated slowdown in lending and spike in non-performing loans (NPLs),…
Interview:Abdeslam Ababou How can the CSE boost its liquidity? ABDESLAM ABABOU: The CSE is working towards easier access for foreign investors and hopes to regain liquidity through the privatisation of state-owned companies. In order to make the exchange more attractive and garner more liquidity, the government has already launched a major privatisation policy, and was allocated Dh6bn ($625m)…
Interview:Karim Hajji What changes will the CSE undergo following the passage of its new articles of association? KARIM HAJJI: The new articles of association, part of our Ambition 2021 development plan, will boost the attractiveness of our marketplace by diversifying the product offering. The implementation of real estate investment trusts will make the exchange particularly attractive, as…
Interview:Souad Benbachir How can regulatory reforms galvanise the market? SOUAD BENBACHIR: Capital market regulation is becoming more flexible and autonomous. The Moroccan Capital Markets Authority and the Casablanca Stock Exchange (CSE) now have more authority to adapt to the economic situation. In addition, the introduction of real estate investment trusts (REITs) will bring a new class…
Interview:Ramses Arroub How should the market be modernised in order to meet Solvency II standards? RAMSES ARROUB: The proper functioning of the Solvency II Directive 2009 regulatory standards depends on two main pillars, namely good governance and capital requirements. The implementation of a proper governance scheme is the best protection against any internal business risk. This means creating…
Interview:Abdellatif Jouahri What are the main monetary policies adopted by BAM in response to current conditions? ABDELLATIF JOUAHRI: As we predict inflation to remain moderate in the medium term and non-agricultural activities to see a gradual recovery, BAM has maintained an accommodative monetary policy in recent years, keeping its key rate unchanged at the historical low level of 2.25%.…
Interview:Kamal Mokdad What is the potential for growth across the African continent for Moroccan banks? KAMAL MOKDAD: Today, sub-Saharan Africa is an area of expansion for Moroccan banks for several reasons. First, the business model developed by financial institutions in Morocco has demonstrated its resilience in terms of sustainability and its ability to support economic emergence through…
