Role of Bank Almaghrib in the Moroccan Economy
Outline I) Overview over the Moroccan banking system II) Monetary authorities 1- Ministry of Finance 2- Bank Al Maghrib III) Banks in Morocco 1- Commercial Banks 2- Off-Shore banks IV) Banking activities 1- Receipts of funds from the public 2- Granting loans 3- new means of payments and withdrawal V) How the banking system is ruled? 1- The access to the banking Profession 2-The right to open a bank account 3- Safety standards 3-1 Liquidity ratio 3-2 The solvency coefficient 3-3 Minimum capital requirements 3- 4 Concentration risk ratio VI) Specialized financial bodies 1- The National Bank for Economic Development (BNDE) 2- Caisse Nationale de Crédit Agricole (CNCA) 3- Credit Immobilier et Hôtelier (CIH) 4- Caisse Marocaines des marches 5- Caisse de Depôt et de Gestion (CDG) 6- The stock of exchange VII) Financing Government Spending (The Dilemma) 1- Are taxes revenues? 2- Analysis VIII) Conclusion IX) References I) Overview of the Moroccan banking system The first Moroccan bank was found in 1802. ... However, it was until 1906 that the first bank counters was created; this creation has been achieved through the act of Algeciras that was singed in the same year. The first Moroccan central bank, which was named “Banque d état du Maroc” was founded in Tangier in 1907 and it was classified as public limited company. ... The arrival of the French protectorate, in 1912, facilitated the Moroccan financial market penetration and the installation of those branches; mostly composed of French banks. ... (Bank al Maghrib publication, & La Banque au Maroc: T. Daoudi) After the independence, Morocco found itself in a complex monetary situation since three currencies were used in the market (The Moroccan Franc, the Spanish Peseta, and a free exchange in tangier.) The second step was the replacement of Banque d’état du Maroc by the Bank of Morocco, a state owned institution with legal personality and financial autonomy. The bank of Morocco was created in 30 Jun 1959 by the Dahir n° 1-59-23. Seeking to conduct the country to an economic development, the state created the main financial Moroccan institutions. ... The consolidation of the Moroccan banking system was legislated by the royal order n° 1-67-66 of 21 April 1967. On March 1987, Bank Al Maghrib replaced Banque du Maroc. ... 1993the Moroccan banking system has known a crucial reform with the promulgation of the Dahir enacting law n° 1-93-147 of July 6, 1993 relating to the credit institutions’ activity and their supervision. II) Monetary authorities 1-Ministry of Finance: According to Bank al Maghrib publications, the ministry of finance is the most powerful financial authority in Morocco. ... 2000) 2- Bank Al Maghrib Bank Al-Maghrib plays important roles such as creating and managing the common-interest service, for the benefit of enterprises or government bodies. ... Bank Al-Maghrib is responsible for supervising the legal and regulatory environment relating to the exercise of the banking profession. Bank Al Maghrib is also characterized by operating in the same manner of commercial banks; it is considered as a private bank. Bank Al-Maghrib’s first objective is to develop the Moroccan economy. ... Bank Al-Maghrib has several functions and responsibilities; it is responsible for: regulating the monetary policy, assure that the banking structure is well performing, managing the public reserves of exchange… ( www. ... Private banks include: • ABN Amro Bank • Arab Bank Maroc • Argentaria • Banque Marocaine pour l’Afrique et l’Orient. This bank is now acquired by BNDE • Banque Marocaine pour le Commerce et l’Industrie • Casablanca Finance Market • Citibank • Banque Commerciale du Maroc bought recently part of Wafabank • Crédit du Maroc • Media Finance • Société Générale Marocaine de Banques • Société Marocaine de Dépôt et Crédit • Union Marocaine de Banque The semi public and public banks include: • Crédit Immobilier et Hotelier • Bank Al Amal • Banque Centrale Populaire • Caisse Nationale du Crédit Agricole • Banque Nationale Pour le Développement Economique • Fonds d’Equipement Communal. ... They are also under the control of Bank AL Maghrib. ... Off-shore banks are all installed in Tangier, and they are: • Attijari international bank • Banque international de Tanger • Banque nationale de Paris • Societe generale Tanger Off-shore IV) Banking Activities 1-Receipt of funds from the public: referring to bank al Maghrib publications “ Under the law, banks have the right to receive funds from households willing to keep their surpluses in a bank. ... 1-The access to the banking profession According to the article 21 of the Dahir that states that “ each enterprise considered as a credit institution, must before carrying out its activity on the territory of the kingdom of Morocco, be approved beforehand, either as a bank, or as a financing company “. This regulation is imposed in order to make sure that the founders and managers that will be given such big responsibilities have the quality to ensure 2- The right to open a bank account According to the provisions of article 65 of Dahir of 6 July 1993, “Any person who does not have a bank account and who sees himself/herself turned down, by registered letter and with acknowledgement delivery, for having asked to open a bank account at any credit institution, can apply to Bank Al-Maghrib that will appoint a bank to open an account in his/her favour.