Banking
From The Report: Morocco 2016
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The banks of Morocco rank among the largest on the continent, with a regional footprint matched only by South Africa’s biggest lenders. Recent years have seen these institutions deepen programmes for small and medium-sized enterprises and expand cashless transactions. The industry is not without challenges, however: having dealt with the issue of depressed liquidity levels several years ago, the sector is now faced with low lending growth and rising levels of non-performing loans, and when faster growth will return is unclear. However, continuing regulatory reform will enhance the stability of the system, and banks’ continuing expansion abroad, as well as the launch of Islamic banking and new payment institutions, will help to maintain profits, bring major new players into the kingdom, diversify the product offering and help boost financial inclusion levels that are already high by regional standards.

This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Adnan Ahmed Yousif, President and Chief Executive, Al Baraka Banking Group.

Articles from this Chapter

Overview

Moving with the times: Economic slowdown pushes banks to diversify offerings and refocus priorities
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The banks of Morocco rank among the largest on the continent, with a regional footprint matched only by South Africa’s biggest lenders. Recent years have seen these institutions deepen programmes for small and medium-sized enterprises (SMEs) and expand cashless transactions. However, that is not to say that the industry is not facing some significant challenges. Having dealt with the issue of depressed liquidity levels a number of years ago, the banking sector is now faced with low lending growth…

Interview

A careful approach: OBG talks to Abdellatif Jouahri, Governor, Bank Al Maghrib (BAM)
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Interview:Abdellatif Jouahri What regulatory challenges do you see arising from the implementation of Islamic banking, and what is being done to address these? ABDELLATIF JOUAHRI: The introduction of Islamic finance, having its own standards, necessitates the implementation of prerequisites across the industry in terms of legal, regulatory and operational aspects. In this regard, BAM has adopted a careful and gradual approach. After an experimental phase, a decisive step was taken in 2015…

Interview

Expand and harmonise: OBG talks to Adnan Ahmed Yousif, President and Chief Executive, Al Baraka Banking Group
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Interview:Adnan Ahmed Yousif What more can be done to coordinate regulations for sharia-compliant products? ADNAN AHMED YOUSIF: The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has been publishing standards and norms for Islamic financial institutions since 1993 and thus plays an essential role in harmonising financial and accounting standards applied by Islamic banks, especially because the standards issued by the organisation are mandatory for Islamic…

Analysis

Opportunities abroad: Major players balance risk and reward as they seek growth
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Attracted by higher levels of growth outside Morocco, the country’s three largest banks by assets have developed a substantial presence abroad, particularly in Africa, where all three have built multinational bank networks over the last decade. The main players, Attijariwafa Bank, Banque Centrale Populaire (BCP) and Banque Marocaine du Commerce Extérieure (BMCE), continue to expand, with the latter already well established in various anglophone and East African markets, and the other two looking…

Analysis

Contrasting visions: The broader impact of sharia-compliant banking is being debated by domestic actors
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Following the publication of new banking legislation in the Journal Officiel in March 2015, Morocco is close to launching a fully-fledged Islamic banking segment (known locally as participative banking). Setting The Standard Since the passage of the law, Moroccan monetary authorities have been working to put in place the applicatory framework for the new segment. A royal decree issued in early 2015 created a board of 10 religious scholars to validate the sharia-compliant nature of products issued…