Financial Sector Assessment : Morocco
This Financial Sector Assessment (FSA) provides a summary of the policy priorities, and main findings intended to assist the Moroccan authorities in evaluating the country's financial system. It reviews the uneasy trade-off between concerns fo...
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/11/2807604/morocco-financial-sector-assessment http://hdl.handle.net/10986/14608 |
| Summary: | This Financial Sector Assessment (FSA)
provides a summary of the policy priorities, and main
findings intended to assist the Moroccan authorities in
evaluating the country's financial system. It reviews
the uneasy trade-off between concerns for stability, and
development, suggesting Morocco's macroeconomic
policies and practices as a whole tend to err more on the
side of the concerns of protecting the economy from external
shocks. The cautionary approach to overall reforms has had
costs in terms of economic growth and development. But, the
approach followed did not leave the financial sector out of
the process of reforms, and institutional modernization,
which permitted, though uneven, the development of the
financial sector, but in turn, not allowed the emergence of
clear financial market benchmark prices. The structural
challenges facing the Moroccan financial system indicate its
financial system focuses on financing the Kingdom's
economy, where despite a developed financial institutional
infrastructure, financial practices lag behind, with a
private financial sector dominated by three conglomerates.
Notwithstanding, the commercial banking sector is globally
healthy, and growing, but the specialized banking system is
in dire straits. The degree of disintermediation away from
the banking sector, remains limited, with banking accounting
for approximately 60 percent of the overall balance sheet of
the financial system, in spite of a pension system that
mobilizes significant resources, but is financially
imbalanced. It is apparent that the main strength of the
system lies in the seemingly, robust health of the private
commercial banks. A comprehensive strategy to strengthen the
financial system would need to include: resolution of the
most troubled state-owned banks; review of current
procedures used to cope with problem banks; efforts to
address the fragility of non-bank financial institutions;
clarification of the role of the public financial
institutions; and, reinforcement of financial supervision. |
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