These public mandates consist, among other things, of financing priority sectors and public projects and providing financial services in rural areas.
Including Crédit populaire du Maroc, which consists of a state-owned central institution (BCP) and 16 regional privately-owned banks. The entire group is considered public here because of the central institution’s impact on its policies.
Since then, two public specialized banks (BNDE and CNCA) have been merged.
The two mergers that are currently underway will result in the disappearance of one public commercial bank and one private commercial bank.
The former OFS’s are the BNDE, FEC, CIH, and CNCA.
Banks are required to invest 2 percent of their deposits in securities issued by the CNCA, which are remunerated at an interest rate of 4.5 percent.
In June 2002, it was estimated that a recapitalization of the two large specialized banks to the eight percent minimum CAR would cost about one percent of GDP, or about 3.5 percent of the annual government budget.
It should be noted, however, that these nonperforming loans include loans backed by guarantees and/or collateral.
This high degree of risk concentration is the result of a recent merger of two major groups. BAM has asked the merged entity to seek other sources of finance (other than the domestic banking system) in order to reduce the system’s exposure.
The sectoral test related to government finance looked into the indirect effects of government arrears on the quality of banks’ loan portfolios, by assessing the sensitivity of the different sectors of the economy to government arrears. It does not consider the effects on the banks’ holdings of government bonds.
The test related to remittances looked into the indirect effects on the quality of banks’ loan portfolios of a substantial decline in the flow of remittances.
Moroccan businesses often finance long-term investment projects with short-term credits, which are repeatedly rolled over and/or eventually converted into long-term credits.
Treasury bills cannot be redeemed before maturity at the Treasury itself, but the BAM’s standing facilities allow banks to refinance them at any time.
Prudential regulations limit open positions to 10 percent of capital in any one currency, and to 20 percent for all currencies combined.
Under Moroccan law, the owner of land is also the owner of all the structures on it, obliging the leasing companies to purchase land which they cannot then depreciate.
To this day, no securities market crimes have ever been prosecuted in Morocco.
BAM holds 10 percent of CIH and has a seat on the boards of directors of the CNCA, CIH, and FEC, as well as on the supervisory boards of CDG and CCG.
The Basel Core Principles were issued in September 1997 and the Core Principles Methodology was released in October 1999 by the Basel Committee on Banking Supervision. The IMF Code of Good Practices on Transparency in Monetary and Financial Policies was adopted by the Interim Committee in September 1999 and the supporting documentation was approved by the Executive Board in July 2000. The draft Core Principles for Systemically Important Payment Systems, including the methodology were issued for comments in December 1999. The final set of principles was issued in January 2001. The IOSCO Objectives and Principles were issued in September 1998 and a detailed self-assessment methodology is being developed. The IAIS Supervisory Principles were issued in September 1997 and a self-assessment program has been developed to assist the members in evaluating compliance.
Decree No. 2-78-539 of November 22, 1978.
Economists with the Monetary and Exchange Affairs Department of the IMF.