Banking
From The Report: Morocco 2014
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Morocco’s banking sector remained resilient in 2013, benefitting from cash injections from Bank Al Maghrib, the central bank, and the industry is among the most sophisticated on the continent. Although liquidity is still less than ideal and non-performing loans have inched upwards, indicators have been positive for the sector, with capital adequacy requirements well above Basel III and deposits growing robustly. In what was both a local and a regional first, 2013 saw a private Moroccan financial institution turn to the international capital markets to float $300m worth of bonds. With Europe’s economy slowly seeing a much-needed improvement (the European Central Bank forecasts economic growth of 1.1% in 2014 and 1.5% in 2015 for the area) and Morocco establishing a number of partnerships with Middle Eastern, US and Asian partners, the country as a whole should benefit. This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib, and Othman Benjelloun, President, BMCE Bank.

Articles from this Chapter

Overview

Positive indicators: Although liquidity has fallen, the sector remains in good form
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While its neighbours to the north have struggled with the slow recovery in Europe and continue to face hefty fines from aggressive regulators, Morocco’s banking sector remained resilient in 2013, benefitting from cash injections from Bank Al Maghrib (BAM), the central bank. The industry remains one of the most sophisticated on the continent, home to the headquarters of a number of Africa’s largest regional banks. Although liquidity is still less than ideal and non-performing loans (NPLs) have inched upwards, indicators have been positive for the sector, with capital adequacy requirements well above Basel III and deposits growing robustly.…

Analysis

Eyes on all horizons: Banks are diversifying their sources of funding
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Liquidity has been a frequent topic of discussion in the banking sector over the past number of years. However, as Hassan El Basri, director-general in charge of risks at Banque Centrale Populaire (BCP), indicates, liquidity in Morocco’s banking system reflects that of a “normal” banking system. According to El Basri, people talk of illiquidity due to the fact that one can identify two distinct periods in Morocco’s recent banking history: pre-2007, when Morocco suffered chronic excess liquidity as a result of the massive influx of capital due to numerous privatisations and significant remittances from abroad, and post-2007, when…

Interview

OBG talks to Abdellatif Jouahri, Governor, Bank Al Maghrib
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Interview:Abdellatif Jouahri What are the major challenges facing the Moroccan banking sector as it works to implement Basel III, and how can these be overcome? ABDELLATIF JOUAHRI: In August 2013, Bank Al Maghrib published the provisions of the Basel III framework relating to the capital and liquidity coverage ratio requirements. Regarding the capital requirements, the new standards have raised both the quality and quantity of the regulatory capital base. These introduce new adjustments to…

Interview

OBG talks to Abdellatif Jouahri, Governor, Bank Al Maghrib
OBG
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Interview:Abdellatif Jouahri What are the major challenges facing the Moroccan banking sector as it works to implement Basel III, and how can these be overcome? ABDELLATIF JOUAHRI: In August 2013, Bank Al Maghrib published the provisions of the Basel III framework relating to the capital and liquidity coverage ratio requirements. Regarding the capital requirements, the new standards have raised both the quality and quantity of the regulatory capital base. These introduce new adjustments to…

Interview

OBG talks to Othman Benjelloun, President, BMCE Bank
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Interview:Othman Benjelloun Have the new regulations improved performance? OTHMAN BENJELLOUN: In cooperation with Bank Al Maghrib, Moroccan banks have made major efforts to raise provisions, which have reached Dh24bn (€2.13bn), with voluntary additions provided by banks. Since 2011, supplementary provisions have been in place to cope with unexpected defaults from the private sector. This large-scale initiative was made possible by the solid foundations of the Moroccan banking system. Banks…

Analysis

Financial inclusion: The post office has become one of the nation’s largest banks
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With an average banking penetration rate of only 18% in the MENA region, according to figures from the World Bank, much ado has been made in recent years as to the potential role of postal systems in boosting financial inclusion. As existing and trusted entities with extensive networks that reach into rural areas where banks are largely absent, post offices are an obvious under-tapped resource to bridging this gap. Moreover, the same World Bank’s Global Findex dataset found that people with a postal bank account tend to be older, poorer, less educated and less likely to be employed than those who hold a bank account. In other words, post…