Crisis resolution framework
1- Operational arrangements
In the event of a systemic crisis, the Systemic Risks Coordination and Monitoring Committee convenes to assess the situation, coordinate its response, and decide to activate the Crisis Committee, if necessary.
If the Committee considers that the situation requires a Government financial intervention, its chairperson should accordingly inform the Minister of Finance, in his/her capacity as chairperson of the Crisis Committee. The latter should be provided with the conducted analysis, which should cover in particular: (1) the nature and consequences of the shock, (2) a preliminary draft on possible resolution measures, and (3) the recommended timeline for actions to be undertaken. The Crisis Committee measures the likely systemic implications of the crisis and develops tailored responses and a plausible exit strategy.
The CCSRP conducts additional analyses that the Crisis Committee may request, in case of need, and coordinates the implementations of the measures determined by the Crisis Committee.
2- Emergency liquidity assistance
The aim of emergency liquidity assistance is to prevent or redress a situation likely to represent a risk to financial stability, mainly through contagion on the interbank monetary market. These loans are granted exclusively in exceptional circumstances to solvent and systemically important banks experiencing liquidity shortfalls. They are granted over-the-counter in the form of repos or guaranteed loans and must be covered by eligible assets which are extended to negotiable debt securities, Moroccan monetary and bond UCITS, securitization trusts and loans to public and privates businesses.
The provisions on emergency liquidity measures have been introduced in the draft Statutes of Bank Al-Maghrib, which is currently going through adoption.