Macroprudential policy
The strategic framework for macroprudential policy was drawn up and formalized in 2019 on the basis of international standards and the experience of other central banks in this area. This framework defines the scope of this policy, its intermediate objectives, its instruments and the related decision-making process.
A. GOVERNANCE OF MACROPRUDENTIAL POLICY
Established by the Banking Act of 2015, the Systemic Risks Coordination and Monitoring Committee is responsible, in particular, for macroprudential oversight of the Moroccan financial sector.
For its part, and in accordance with its new Status, Bank Al-Maghrib contributes to financial stability, notably within the framework of the Systemic Risks and Monitoring Committee and through its internal Financial Stability Committee interne. In addition, the Bank may propose to the Government any other measure aimed at maintaining financial stability.
The other regulators (ACAPS and AMMC) are in the process of amending their founding texts to include the mission of contributing to financial stability.
B. MACROPRUDENTIAL POLICY OBJECTIVES
Macroprudential strategy is defined with the aim of linking the ultimate objective of financial stability to intermediate objectives and macroprudential instruments. The intermediate objectives taken together should cover the risks to financial stability, to avoid "blind spots" in macroprudential policy.
The intermediary objectives set are as follows:
- Mitigate and prevent excessive credit and debt expansion
- Mitigate and prevent excessive maturity and liquidity transformation (in dirham and foreign currencies)
- Mitigate and prevent excessive concentration of financial players' direct and indirect exposures
- limit the systemic impact of inappropriate incentives leading to moral hazard.
C. MACROPRUDENTIAL POLICY INSTRUMENTS
Depending on the intermediate objective pursued, and with the aim of providing both an adequate and effective response to the systemic risks identified, while avoiding undesirable side-effects, a battery of macroprudential instruments has been defined.
