This note was prepared by O. Partsch (LEG external expert), under the supervision of W. Bossu (deputy to the assistant general counsel), and K. Drevina (senior counsel).
Participative banks are defined in Article 54 of the banking law as legal entities authorized to offer Islamic finance products.
Article 32 of the organic law of finance.
Cote d’ivoire, Centrafrique, Niger, and Mali.
Including treasury bonds, claims guaranteed by the Moroccan State, securities issued by BAM, claims denominated in EUR or USD, issued by OECD governments with a rating of A, the negotiable instruments, parts in monetary investment funds, and units in collective securitization investment funds.
Article 23(1), 7th indent.
Article 113 of the Banking Law.
Article 117 of the Banking Law.
Article 115.3° of the Banking Law.
Articles 117 and 120 of the Banking Law.
Reference shall be made to the Key Attributes of Effective Resolution Regimes for Financial Institutions (« KA »), which may be considered as a codification of such international best practice.
See for instance KA 1.1.
See for instance KA 1.2 and 2.3.
See for instance KA 2.1 and 2.5.
See for instance KA 3.1.
See for instance KA 5.1., 7.4.
Under Article 115, the provisional administrator describes in a report “the nature, origin, and importance of difficulties of a bank as well as the measures which may contribute to its recovery.” The provisional administrator may propose the transfer of the bank’s assets to an ad hoc structure “when such asses are considered as compromised.”
Article 116 stipulates that BAM may decide to continue to exploit the bank if it encounters serious difficulties of recovery.
In the draft central bank act, Article 95 provides that “for the recovery of its claims in the context of its missions relating to monetary policy or financial stability, BAM has a special lien over the financial assets of the borrowing banks that prevail over any other lien.”
See Article 122 of the Banking Law.
See KA 4.1, 4.2., 4.3.
See KA 3.5.
Articles 112 (cross-border bilateral conventions), 115 (fixes the delay within which the report of the provisional administrator is due on the banking resolution option), 116 (decides on continuation of the ailing bank), 118 (refers to the court the appointment of a proxy-holder for exercising the voting rights of the board members), 120 (refers to the court the decision to transfer the securities of the board members), 121 (authorizes the sale or acquisition of assets of the ailing bank), 123 (receives the report of the provisional administrator), 124 (agrees on the convening of the shareholders’ meeting), 132 (adopts the agreement with the managing company of the DGF), 134 (approves the articles of incorporation of the managing company of the DGS), 136 (issue the opinion on the provision of emergency liquidity to the ailing bank by the DGF), 138 (adopts the conditions of payment to the depositors from the DGF), and 140 (determines the content of regular reporting by the provisional administrator).
Articles 114 (appointment of the provisional administrator), 126 (appointment of the provisional administrator under urgent circumstances), 127 (decides of the resolution tools under urgent circumstances), 135 (chairs the meetings of the managing company of the DGF), 137 (requests additional contributions from banks to finance the DGF), 142 (sets out the conditions for the management of the DGF), 145 (appoints liquidator), 147 (adopt circular on exemption from claim declaration process for depositors).
Article 121 of the Banking Law.
Article 127 of the Banking Law.
See in this respect KA 2.6.