Banking In Morocco

Morocco has been gradually implementing banking and financial sector reforms to attract higher levels of capital investment and to give domestic banks greater flexibility.

Reforms have focused on liberalizing credit controls, liberalization of interest rates and replacement of direct credit control by a system of credit management relying on required reserve ratios and adjustment of the Central Bank. Other measures are under way for greater liberalization of this sector.

An Off-shore financial center is operational in Tangier. Two international banks have already been officially granted permission to set up in Tangier and other major foreign banks are expected to set up operations in the near future.

Banking system:
The banking sector in Morocco comprises the central bank, investment institutions and about 18 other commercial banks, which provide a comprehensive range of services.

Central Bank:
Bank Al-maghrib was set up on June 30th, 1959 and is both a central bank and issuing bank. As a central bank, it has supervisory powers over credit distribution and control. Central Bank guarantees: the supervision of the other banks as well as financial institutions. The way to manage gold and is the active advisor of the government. 

Other banks existing in Morocco are submitted to the legislation of authorities.

Specialized bodies finance production within various economic sectors. Six of them are public or semi-public bodies, these are: 

The National Bank of Economic Development (Banque Nationale Pour le Developpement Economique -BNDE). The Moroccan Fund for Markets (Caisse Marocaine des Marches (CMM). The National Fund for Agricultural Credit (Caisse Nationale de Credit Agricole -CNCA). The Central Guarantee Fund (Caisse Centrale de Garantie -CCG). The Fund for Management and Deposit (Caisse de Depot et de Gestion -CDG). The Property and Hotel Credit (Credit Immobilier et Hotelier -CIH). The Moroccan stock exchange market is located in Casablanca.


Commercial Banks:
There are about 18 commercial banks and virtually all of them provide commercial and savings bank activities, with merchant banking facilities provided as an accessory service.

Special-purpose Banks:
Mainly government controlled, they have been set up to serve special purposes:
- provide finance to the Agricultural sector.
- Finance investments for the economic growth and development of the country.
- Finance Hotels and other real estate, including privates homes.

Specialized Financial Institutions:
Government-sponsored financial institutions:
Special financial organizations have been established by the government to finance businesses and industries considered to be in the interest of the country.

Investment Institutions:
There are over 20 insurance companies in Morocco, specific regulations govern the minimum and/or maximum percentage of funds that should be invested in specific instruments or sectors.

Source of Funds:
Local financing:
There is a various source of local finance ranging from short-term to medium and long-term sources. Funds can also be raised through the stock exchange by the issue of shares and bonds.

For foreign investors:
Local financing is available to foreign investors on the same basis as to Moroccan companies