Publication: Morocco : Financial Sector Strategy Note
Loading...
Published
2000-09-26
ISSN
Date
2013-08-09
Author(s)
Editor(s)
Abstract
The report presents an overview of financial sector reforms in Morocco, between 1990-1998, a period notable for liberalization. Reforms targeted the banking sector, development of the capital market, and liberalization of the financial sector, with recent reform efforts focused on savings institutions (insurance and pension funds). Included were the elimination of credit ceilings, interest rate liberalization, and overhaul of the legislative framework governing lending institutions, namely through the adoption of the new Banking Law of 1993. As a result, the financial sector is increasingly operating in accordance with market rules, and, financial inter-mediation has intensified. The financial situation of commercial banks is healthy, and has clearly improved since 1993, with foreign exchange risk exposure well below prudential limits. However, management of credit risk should improve, due to the high percentage of non-recoverable loans. Return on equity of Moroccan banks has been satisfactorily achieved, despite weak responsiveness by bank lending, and short-term rates to market conditions. Recommendations include reduction of bank inter-mediation costs, while preserving financial soundness; improvement of bank prudential regulation, and financial disclosure; increased lending and savings competition; and, promotion of market-based interest rates, and, reform of the government securities market.
Link to Data Set
Citation
“World Bank. 2000. Morocco : Financial Sector Strategy Note. © World Bank. http://hdl.handle.net/10986/14986 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Macroprudential Policy Framework : A Practice Guide(Washington, DC: World Bank, 2014-04-29)This practice guide is primarily intended as a reference and guidance for emerging market economies in their migration to a formal macroprudential policy framework. It relies largely on the existing wisdom, knowledge, and experience and was written with the intention of assisting policy makers (and the World Bank staff working with these authorities) in the implementation of macroprudential policy frameworks in jurisdictions with the following characteristics representative of a typical emerging market and developing economy: 1) a simple and bank-dominated financial system where other financial sector segments are much smaller, but growing; 2) banking supervision function is within the central bank; 3) financial sector regulation/supervision is not integrated; 4) uncertain availability of quality data. A macroprudential policy framework is not a silver bullet for safeguarding financial stability. It is also useful to highlight that a macroprudential policy framework cannot take the place of other public policy frameworks. While pursuing macroprudential policy to build a more resilient financial system, authorities should also take into consideration the significant financial development needs that may exist in their respective jurisdictions. This Practice Guide has been structured in a logical sequence that mirrors implementation. The second and third sections are laid out to clarify and provide some context to the concept of a macroprudential approach to supervision and discuss the institutional framework. The fourth and fifth sections deal with the operational aspects of macroprudential policy framework that are timely detection of systemic risks using early warning systems and addressing the buildup of systemic risks with macroprudential policy instruments.Publication Republic of Korea Financial Sector Assessment Program : Detailed Assessment of Observance - Basel Core Principles folr Effective Banking Supervision(World Bank, Washington, DC, 2014-09)This assessment of the current state of the implementation of the Basel core principles for effective banking supervision (BCP) in the Republic of Korea has been completed as part of a financial sector assessment program (FSAP) update undertaken by the international monetary fund (IMF) and the World Bank (WB) during 2013. It reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. An assessment of the effectiveness of banking supervision requires a review of the legal framework, and detailed examination of the policies and practices of the institution(s) responsible for banking regulation and supervision. In line with the BCP methodology, the assessment focused on the financial services commission - financial supervisory authority (FSC-FSS). This FSAP provides introduction; information and methodology used for assessment; institutional and macroeconomic setting and market structure - overview; preconditions for effective banking supervision; summary compliance with the Basel core principles; and detailed assessment.Publication Payment Systems, Inside Money and Financial Intermediation(2010-10-01)This paper assesses the impact of introducing an efficient payment system on the amount of credit provided by the banking system. Two channels are investigated. First, innovations in wholesale payments technology enhance the security and speed of deposits as a payment medium for customers and therefore affect the split between holdings of cash and the holdings of deposits that can be intermediated by the banking system. Second, innovations in wholesale payments technology help establish well-functioning interbank markets for end-of-day funds, which reduces the need for banks to hold excess reserves. The authors examine these links empirically using payment system reforms in Eastern European countries as a laboratory. The analysis finds evidence that reforms led to a shift away from cash in favor of demand deposits and that this in turn enabled a prolonged credit expansion in the sample countries. By contrast, while payment system innovations also led to a reduction in excess reserves in some countries, this effect was not causal for the credit boom observed in these countries.Publication Mexico : Basel Core Principles - Detailed Assessment of Observance(World Bank, Washington, DC, 2013-03)This detailed assessment of the current state of implementation of the Basel core principles in Mexico has been completed as part of a financial sector assessment program update undertaken jointly by the International monetary fund and the World Bank. The assessment was conducted in September 2011 to update the 2006 assessment. It reflects the banking supervision practices of the country as of end-July 2011. Moreover, the bar to measure the effectiveness of a supervisory framework was raised following the recent financial crisis. The assessment is based on several sources: 1) a self-assessment in August 2011 by the country authorities, including written answers to an exhaustive questionnaire; 2) detailed interviews with staff from the relevant national agencies, including the CNBV (Comision Nacional Bancaria y de Valores), the Central Bank of Mexico (BoM), the SHCP (Secretaria de Hacienda y Credito Publico), and the Financial Intelligence Unit (UIF); 3) relevant laws, directives, circulars and guidelines, which constitute the regulatory framework; 4) relevant official pronouncements and other documentation on the supervisory framework; 5) primary evidence on the nature and extent of the supervisory practices; 6) sundry information on the structure and development of the country's financial sector, and more specifically, the country's banking sector; and 7) meetings with selected banks, auditing firms, and rating agencies. The assessment was performed in accordance with the guidelines set out in the core principles methodology, and assessed compliance with the 'essential' criteria only. The assessment of compliance with each principle is made on a qualitative basis. A four-part assessment system is used: compliant; largely compliant; materially noncompliant; and noncompliant. The assessors enjoyed excellent cooperation with their counterparts, and received all the information required.Publication Sri Lanka - Financial Sector Assessment(Washington, DC, 2008-01)This Financial Sector Assessment (FSA) is based on the work of the joint World Bank and IMF Financial Sector Assessment Program (FSAP) update team that visited Sri Lanka between June 20 and July 3, 2007. The principal objectives of the FSAP Update were to: (i) assess developments in the financial sector and progress in strengthening financial sector regulation since 2002; and (ii) identify measures that would contribute to consolidation of financial stability and to further development of the financial sector over the next five years. This report describes the main findings of the 2007 FSAP update addressing bank and non bank financial institutions, state bank restructuring, pension funds, insurance, capital markets, supervisory framework, access to finance, and legal and judicial reforms. This report summarizes the recommendations for sustaining financial development.
Users also downloaded
Showing related downloaded files
Publication Republic of Serbia Public Finance Review 2015(World Bank, Washington, DC, 2015-06-24)Since the global economic and financial crisis of 2008, Serbia has struggled with a weak economy and a deteriorating fiscal position. Until 2008, fiscal deficits were moderate and public debt declined significantly. Since the start of the global economic and financial crisis in 2008, however, Serbia has struggled with the interlinked problems of minimal growth and unfavorable fiscal dynamics. As economic activity has stagnated, revenues have fallen and expenditures, particularly mandatory spending on pensions and wages, have remained high. At the same time, structural fiscal issues, such as continued state support to state-owned enterprises (SOEs) and tax administration inefficiencies, have been a drag on growth. As a result of these pressures, general government fiscal deficits averaged 5.6 percent of GDP a year between 2009 and 2014. Reflecting the high fiscal deficits and poor economic growth, Serbia’s public debt has more than doubled, from 34 percent of GDP in 2008 to 71 percent at yearend-2014. The objective of this report is therefore two-fold: (i) policy options and recommendations (beyond those built into the current program) that would help solidify the ongoing fiscal consolidation program and help achieve public debt sustainability over the medium term; and (ii) given near-term fiscal constraints, identify opportunities for enhancing the efficiency, quality, and equity of current public spending on health, education, and social protection over the medium termPublication Dealing with Weak Banks in FinSAC Countries(Washington, DC: World Bank, 2024-07-23)A sound banking crisis management framework is paramount to the financial stability of FinSAC’s client countries, especially during systemic crisis scenarios. This paper discusses the key features of FinSAC’s client countries’ financial systems, takes stock of the reforms undertaken during the last decade, while also identifying and explaining individual and systemic banking crises in the broader ECA region. It focuses particularly on preparedness for systemic scenarios, including the key challenges of deploying the bank resolution tools considering the structural features of these countries’ financial systems. The paper makes recommendations to the policymakers of FinSAC client countries, including (i) continuously strengthening their recovery and resolution planning frameworks, by focusing on operationalization, (ii) enhancing their resolution regimes, including by determining a sound and effective burden sharing model, (iii) strengthening their lender of last resort functions, ensuring the provision of liquidity to solvent, yet illiquid banks and (iv) focusing on crisis preparedness. Nonetheless, authorities from other developing countries may also find these recommendations useful.Publication Integrity in Mobile Phone Financial Services : Measures for Mitigating Risks from Money Laundering and Terrorist Financing(Washington, DC : World Bank, 2008)This working paper explores strategies to identify and manage potential money laundering (ML) and terrorist financing (TF) risks in mobile financial services (m-FS). Using fieldwork in seven economies as a basis, the paper provides guidance on the best means of assessing perceived versus actual ML and TF risks, and then identifies specific measures to mitigate the actual risks. The paper concludes with recommendations that aim to promote a regulatory balance to foster an enabling environment for business while minimizing ML and TF risks that hinder its sustainability. The paper identifies four risk factors in m-FS and appropriate mitigation responses. The risk factors are anonymity, elusiveness, rapidity, and poor oversight. Anonymity is the risk of not knowing a customer's actual identity, and it can be diminished through enhanced know-your-customer procedures and identification tools. Elusiveness is the ability to disguise mobile transaction totals, origins, and destinations. It can be diminished through transaction limits and enhanced customer profiling, monitoring, and reporting. Rapidity is the speed with which illicit transactions can occur. Its risk is checked by flagging certain types of transactions and managing risks of third-party providers. The fourth type of risk is poor oversight, which can be mitigated by transparent guidelines on mobile services, clearer licensing, regulation of providers, and effective risk supervision within bank and non-bank m-FS providers.Publication World Bank Annual Report 2024(Washington, DC: World Bank, 2024-10-25)This annual report, which covers the period from July 1, 2023, to June 30, 2024, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Ajay Banga, President of the World Bank Group and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.