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Morocco : Financial Sector Strategy Note

FINANCIAL SECTOR REFORM FINANCIAL LIBERALIZATION SAVINGS PROMOTION INSURANCE INDUSTRY PENSION FUNDS CREDIT CEILINGS INTEREST RATES LEGAL FRAMEWORK LENDING INSTITUTIONS BANKING LEGISLATION MARKET BASED MECHANISMS BANKING SYSTEMS FOREIGN EXCHANGE RISK MANAGEMENT PRUDENTIAL REGULATIONS CREDIT RISK PREMIUM EQUITY FINANCE LENDING INSTRUMENTS FINANCING OPTIONS DISCLOSURE LAWS & REGULATIONS MARKET ECONOMY SECURITIES MARKETS ACCOUNTING ACCOUNTING PRINCIPLES ACCOUNTING STANDARDS AFFILIATES ASSET VALUATION AUDITING AUTONOMY BALANCE SHEET BALANCE SHEETS BANK ACCOUNTING BANK ASSETS BANK CAPITAL BANK DEPOSITS BANK LENDING BANK LIQUIDITY BANK LOANS BANK NOTES BANK REGULATION BANK RESERVES BANK SERVICES BANK SUPERVISION BANKING INDUSTRY BANKING LAW BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEMS BANKS BENCHMARK BENCHMARKS BONDS BORROWING BORROWING COSTS BRANCH BANKING CAPITAL ADEQUACY CAPITAL BASE CAPITAL MARKETS CAPITALIZATION CENTRAL BANK CHECKING CHECKING ACCOUNTS COMMERCIAL BANKS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATION COOPERATIVE BANKS CREDIT INSTITUTIONS CREDIT RISK DEBT DEMAND DEPOSITS DEPOSITS DIRECT FINANCING EMERGING MARKETS EXCHANGE TRANSACTIONS EXTERNAL DEBT FARM CREDIT FINANCIAL ASSETS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FISCAL YEAR FOREIGN EXCHANGE GDP GOVERNMENT BONDS GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROSS NATIONAL SAVINGS GROWTH RATE GUIDELINES HOUSING INFLATION INITIAL PUBLIC OFFERINGS INSURANCE INTERBANK PAYMENTS INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANKS INTERNATIONAL MONETARY FUND INVESTOR PROTECTION IPO LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LENDING INSTITUTIONS LIQUID ASSETS LIQUIDITY MANAGEMENT M2 MACROECONOMIC CONDITIONS MARKETABLE SECURITIES MATURITIES MUTUAL FUND MUTUAL FUNDS OWNERSHIP STRUCTURE PORTFOLIOS PRIVATIZATION PROFITABILITY PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS REGULATORY FRAMEWORK RETIREMENT RETURN ON EQUITY SAVINGS SAVINGS ACCOUNTS SAVINGS INSTITUTIONS SHARE CAPITAL SHAREHOLDERS SPECIALIZED BANKS SUBSIDIARIES SUPERVISORY AUTHORITIES T-BILLS TAXATION TIER 1 CAPITAL TRADING
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Washington, DC
Middle East and North Africa | Morocco
2013-08-09T21:00:36Z | 2013-08-09T21:00:36Z | 2000-09-26

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.

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