Hi,An interesting article published by the respectable Lebanese newspaper "AL HAYAT". This article provides analysis about the recent positive developments in the banking sector in Morocco. Things are moving slowly but surelysource: http://english.daralhayat.com/busin...ccc4/story.htmlA Promising Future for the Moroccan Banking Sector Samir Sobh Al-Hayat - 05/05/06Abdel Latif al-Jawahri, who had left his post as Chairman of the Moroccan Bank for Foreign Trade some years ago, was summoned by King Mohammed VI to be appointed as the new Governor of the Central Bank of Morocco. When the Moroccan King made this decision, he was sure that the former Finance minister, who was known for his efficiency, honesty and frankness, would be able to promote the banking sector. He would improve the image of the banking sector, which plays the most important role in the Arab Maghreb region, consequently raising its performance and boosting the confidence of international financial institutions of the region.Four years after his management of this sector, al-Jawahri succeeded in ridding most of the shortfalls hindering the sector, starting from the defaulting debts claimed by the rest of the state-owned banks, the dubious large deposits, which were actually money laundering operations; and finally forcing all banks to strictly abide by the Basel II Regulations, which some banks had attempted to violate.The annual objective and unbiased reports, drawn by the Governor of the Central Bank and presented to the King; rubbed salt into the wounds, contrary to the tradition of flattery. These reports played key roles in accelerating the current reform process, in spite of the complaints and objections which were regularly sent to the Royal Palace from bankers, who described these measures as harsh and others who saw them as unfair.The merger of the two private sector banks, al-Waffa and the Moroccan Commercial Bank, two years ago, led to the formation of a giant bank: the Commercial Waffa Bank. This bank was in a bid to consolidate the banking sector and open the doors for local banks to invest abroad.The Bank thus succeeded in competing with French banks, like Societe General, when Tunisia declared the selling of the country's share, estimated at 35% of the Bank of the South.This successful operation encouraged the Moroccan Bank for Foreign Trade to draw closer to the Algerian banking sector, in order to buy any private sector bank shares, and prepare to keep pace with the privatization program the Algerian government intends to launch this year.In this regard, it has become known that the two Moroccan major banking groups are today studying the possibility of involvement in the Libyan banking sector; especially following the government in Tripoli recently declaring that it planned to open the sector to foreign investment with a privilege to Moroccan banks.These givens are enough to indicate that the Moroccan banking sector has a promising future. The banking sector will certainly be positively affected under the current active money market, where the volume of the daily average liquidity during the first three months of this year hit approximately 5.2 billion Moroccan dirhams (the euro is equivalent to 11000 Moroccan dirhams), and a rising stock exchange which has been booming since last September.For example, on April 18 the Casablanca Stock Exchange drew in 272.5 million dirhams with an increase of 100 million than the figure of the day before.On the other hand, financial analysts observe that the recent foreign inflows of foreign investments, especially those coming from the Arab Gulf; such as the Dubai Holding Group, which signed a 12-billion dollar agreement, and the Eemar Group, which signed a memorandum worth 25.3 billion dirhams.Confidence in the banking and financial sector in Morocco drew in these funds inflows. These analysts hold a comparison between this strong and high performance sector and that of Algeria, which suffers from weakness and absence of transparency, in spite of the oil returns, huge quantity of liquidity on the market and public sector banks, and the massive reserves of foreign currencies due to exceed 66 billion dollar by next July.Economists view that the Moroccan banking sector will be the prime beneficiary of bank mergers achieved under the supervision of the IMF. A meeting was recently held in Algeria with the objective of laying down systems capable of activating the trade exchange among Algeria, Tunisia and Morocco, and removing all obstacles which impede its rise.The steps taken, both by the Moroccan money market and the modernization process introduced in the local banking sector, will play a role in the interest of the Moroccan economy, at least in the near future.//en.yabiladi.com/topics/promising-future-moroccan-banking-sector-44-1105114-1105114.html#msg-1105114 Thu, 04 Jun 2026 19:03:58 +0200 Phorum 5.2.15