Budget Rules of the Bank
Bank Al-Maghrib adopts an integrated planning approach starting with strategic planning that provides the basis for operational planning (budgeting) and gives rise to the elaboration of reports to ensure the monitoring of objectives and to implement remedial actions in case of discrepancies.
The budget development and implementation process is governed by the Budget Charter, which defines the roles and responsibilities of the various actors involved in the budget process and sets out the principles and rules, such as the alignment to the strategy, the proper financial management, the non-compensation of expenses and income, annuality, specialization of financial years and fungibility.
When drawing up its budget, the Bank shall ensure adherence to the following rules:
- the financing of the means necessary to achieve its objectives which will enable it to carry out its tasks;
- increased optimization of costs, adaptation of resources to strategic priorities as well as to efficiency and compliance requirements;
- the determination of its investments in a rational and efficient manner.
In accordance with the budget schedule, the work begins in June with the scoping phase, which makes it possible to set the projected rate of change of the Bank’s operating budget.
During October, the appropriateness of certain operating expenses is validated by the internal management committee. Regarding the investment budget, it is subject to projects prioritization process and the examination of the advisability of all new investments by the Adhoc Committees before its submission to the Coordination and Internal Management Committee dedicated to investments. This will thus allow the Bank to make the necessary arbitrations.
In November, the Investment Committee validates the new investments budgets and its annual allocation.
At the end of this process and in accordance with the provisions laid down in BAM Statute, the Bank’s Board , at its December meeting, validates the Bank’s annual budget and the amendments made to it during the year.