The supervision of the banking sector is crucial to the stability of the financial system and its efficiency, given the role assumed by credit institutions in terms of financial intermediation and payment systems. Its main goal is to preserve public confidence in the banking sector.
In Morocco, the law has entrusted to Bank Al-Maghrib banking supervision as one of its core missions. The performance of this mission is carried out under the provisions of Law No. 103-12 on credit institutions and similar bodies, as promulgated by the Royal Decree (Dahir) No. 1-14-193 of 1st Rabii I 1436 (December 24, 2014 ), as part of an enhanced independence and extended powers.
The responsibilities of Bank Al-Maghrib in terms of supervision relate to the enactment of accounting and prudential rules, off-site and on-site inspection of credit institutions and the resolution of difficulties they may face.
The implementation scope of the banking law covers, in addition to the credit institutions which include banks and finance companies, other entities involved in banking-related activities namely the Deposit and Management Fund, the Central Guarantee Fund, offshore banks, microcredit associations and payment institutions.
The new Banking Law extends the prerogatives of Bank Al-Maghrib to the licensing of microcredit associations and offshore banks, the elaboration of regulations governing their activity as well as addressing their problems, including license withdrawal.
In addition, the new law devotes a full chapter to participatory banks highlighting the basic principles governing their activity, its scope and the institutional framework specific to them, including the creation of a function responsible for identifying and preventing the risk of non - compliance of their operations and activities with the opinions of the Supreme Council of Ulama (Islamic scholars).
These banks are subject to the same licensing and supervision procedures alongside the necessary adjustments to comply with the standards in this field.