Banking
From The Report: Morocco 2020
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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, profitability and capitalisation have remained relatively stable, underpinned by important regulatory changes. The authorities are working to increase financial inclusion by targeting small and medium-sized enterprises, women, youth and rural residents, all of whom are traditionally under-represented in the financial system. Diversified offerings, including sharia-compliant participatory banking, and financial technology products, such as e-wallets, are important developments towards this end. This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Kamal Mokdad, CEO and Head of International Global Banking, Banque Centrale Populaire.

Articles from this Chapter

Overview

Take it to the bank: Stronger regulations and continental expansion fuel growth
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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), profitability and capitalisation have remained relatively stable, underpinned by important regulatory…

Analysis

By the book: Market matures with new sharia-compliant offerings
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In the years since Morocco introduced sharia-compliant financial services in early 2017, local players have grown significantly and cultivated a strong market with diversified offerings, including various banking products, Islamic bonds (sukuk) and Islamic insurance (takaful). “Islamic banks, takaful companies, the regulator and other stakeholders are working closely to complete the Islamic financial services ecosystem and strengthen the tools available,” Fouad Harraze, managing director…

Interview

Going green: Abdellatif Jouahri, Governor, Bank Al Maghrib (BAM), on sustainable banking and increasing financial inclusion
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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%. At the same time, it has continued to support and facilitate financing for micro-, small and medium-sized…

Interview

Growth potential: Kamal Mokdad, CEO and Head of International Global Banking, Banque Centrale Populaire, on expanding the local business model throughout Africa
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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 greater financial inclusion in urban and rural areas. Moroccan banks have developed a broad national…

Analysis

Breath of fresh air: Investors turn to green bonds to finance clean energy and sustainable construction projects
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As businesses and governments worldwide seek to finance the vast investments required for projects to combat climate change and make the global economic model more environmentally sustainable, green bonds have become a popular capital market vehicle. The products are typically structured like a corporate or sovereign bond and asset-linked, but are used to raise money exclusively for sustainable climate and environmental projects. Interest in the environmental, social and corporate governance…

Overview

A swing in the balance: Following a retrenchment of overseas operations by numerous major banks, how are firms in emerging markets responding?
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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 a single global marketplace, and the potential this held for revenue and asset growth. In 1998 co-chairman of the freshly formed Citigroup, Sandford Weill, announced the dawn of a new age of banking in which large institutions would act as financial…

Overview

A swing in the balance: Following a retrenchment of overseas operations by numerous major banks, how are firms in emerging markets responding?
OBG
plus

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 a single global marketplace, and the potential this held for revenue and asset growth. In 1998 co-chairman of the freshly formed Citigroup, Sandford Weill, announced the dawn of a new age of banking in which large institutions would act as financial…