The Major Projects
Mr. Abdellatif Jouahri
Governor of the Bank Al-Maghrib

Financial stability and bank supervision

Bank Al-Maghrib's responsibility in supervising the Kingdom's banks covers everything from authorisation conferral to carrying out banking activities to regulations drafting, via monitoring, sanctions imposition on offending establishments and remedying to their diffiulties.

With regards to regulating banking activities, prudential and accounting norms applicable to Moroccan banks are in line with international standards. All banks are therefore in compliance with Basel 2 provisions for standard approaches, while a number of them are upgrading their systems to encompass advanced approaches. They are also preparing themselves to comply with the Basel 3 equity capital and liquidity standards adopted in 2013, following a progressive timetable for implementation.

Regarding monitoring, Bank Al-Maghrib has implemented a risk-based approach, and carries out checks onsite and on documents. It assesses banks' fiancial and prudential situations and communicates its fidings to their directors. The system serves to structure dialogue between Bank Al-Maghrib and the establishments under its supervision.

Microprudential supervision procedures have recently been complemented by the setup of fiancial sector's macroprudential oversight, based on coordination and cooperation mechanisms formalised between fiancial regulators in order to ensure systematic risk surveillance.

Inclusion and fiancial education
Financial services development has been picking up pace in Morocco over the past few years, largely due to a series of initiatives taken by Bank Al-Maghrib, banks and public authorities to increase degrees of fiancial inclusion.

Banks have set up targeted strategies encouraging low-income citizens to open bank accounts and have designed models for fiancial inclusion based on products adapted to such clientele, using innovative technological solutions to do so.

The authorisation granted to the post-offie bank has added fresh impetus to such strategies. In parallel, the microcredit sector is providing fiancial services to low-income clients without bank accounts.

Financing of VSMEs
Numerous actions have been undertaken or are currently underway to improve conditions for fiancing VSMEs. In addition to periodic organisation, in coordination with other stakeholders, of national awarenessraising campaigns on VSME fiancing and the creation of the credit bureau, Bank Al-Maghrib recently implemented a new mechanism enabling banks to refiance themselves through it, for the loans they grant VSMEs.

Along with other partners, it is working towards the creation of a VSME observatory and setup of a fiancial support fund for joint-fiancing of viable VSMEs together with banks, while remaining well aware about passing diffiulties stemming from a problematic economic situation.

Supervision of systems and means of payment
Since 2009, Bank Al Maghrib has been working to consolidate the robustness of fiancial market infrastructures and ensure security of exchanged payment instruments. It has also set itself to deploying and fialising the fist series of onsite assessments on the compliance of all exchange systems with international standards enacted by the CPSS/IOSCO and with regulations currently in force.

It also oversaw implementation of an automated solution designed to ensure cheque and bank card fraud's continuous surveillance, analysis of inter- and intra-bank data, and monitoring of the overall state of progress of banks' adoption of the EMV standard.