The Central Bank and the Banking System in Morocco
The central Bank and the Banking System in Morocco : The financial crisis
El Ammari Mehdi
Eco2302
Dr S. Koubida
The financial crisis that the world is encountering now is describes as the worst of all times. It has affected almost every country in the world; creating recessions, increasing unemployment and the government’s deficits. However, Morocco in considered as one of the few exceptions. Unlike the other world’s power, Morocco has known an economic growth of 2% since the beginning of the crisis (The financial times, The Sunday times.) Most financial analysts relate this Moroccan exception to the Moroccan central bank (Bank Al Maghreb) and its banking system. So how does the banking system in Morocco works, how does the central bank supervises this system within the financial institutions, and what role did it play in facing the world’s financial crisis.
Bank Al Maghreb, which is the Moroccan central bank, was founded in 1959; right after Morocco took its independence. Since that time, this system was responsible of the most important financial decision in the kingdom, such as implementing the monetary policies instruments, managing the public exchanges reserves as well as advising the government on financial issues and taking part in the negotiations and implementations of international financial agreements (Bank Al Maghreb website).
In order to have a deeper understanding about the central’s bank strategies and policies and its banking system, we must first of all take an overview about its banking laws. The Banking laws in Morocco, which are of course determined and implemented by the central bank consists of 8 major points:
- Scope and institutional framework: This part of the banking law consists on recognizing and distinguishing between the types of financial institutions ( banks, loans agency…), recognizing loans and distinguishing between the different parts of them ( Leasing, Bank loans…) and also stating who are the people that are
El Ammari Mehdi
Eco2302
Dr S. Koubida
The financial crisis that the world is encountering now is describes as the worst of all times. It has affected almost every country in the world; creating recessions, increasing unemployment and the government’s deficits. However, Morocco in considered as one of the few exceptions. Unlike the other world’s power, Morocco has known an economic growth of 2% since the beginning of the crisis (The financial times, The Sunday times.) Most financial analysts relate this Moroccan exception to the Moroccan central bank (Bank Al Maghreb) and its banking system. So how does the banking system in Morocco works, how does the central bank supervises this system within the financial institutions, and what role did it play in facing the world’s financial crisis.
Bank Al Maghreb, which is the Moroccan central bank, was founded in 1959; right after Morocco took its independence. Since that time, this system was responsible of the most important financial decision in the kingdom, such as implementing the monetary policies instruments, managing the public exchanges reserves as well as advising the government on financial issues and taking part in the negotiations and implementations of international financial agreements (Bank Al Maghreb website).
In order to have a deeper understanding about the central’s bank strategies and policies and its banking system, we must first of all take an overview about its banking laws. The Banking laws in Morocco, which are of course determined and implemented by the central bank consists of 8 major points:
- Scope and institutional framework: This part of the banking law consists on recognizing and distinguishing between the types of financial institutions ( banks, loans agency…), recognizing loans and distinguishing between the different parts of them ( Leasing, Bank loans…) and also stating who are the people that are
Cited: Bank Al Maghreb. Bank Al Maghreb. 13 July 2009 . Invest in Morocco. Animaweb. 13 July 2009 . Moroccan Banking sector. The freee Library. 13 July 2009 . Morocco Buisness News. Centre marocain de conjoncture. 13 July 2009 . Morocco Buisness News. CMC. 13 July 2009 .