By virtue of the Banking Act*, which governs the activities of credit institutions, Bank Al-Maghrib is responsible for ensuring the proper functioning and stability of the banking system. In other words, the central bank checks whether banks comply with prudential rules to protect customers. For this purpose, BAM controls all banks and grants them the necessary authorizations to perform their various activities.
Banking supervision is carried out in two ways:
- Permanent monitoring: through analyzing accounting and prudential documents of banks that they transmit to Bank Al-Maghrib;
- Periodic onsite monitoring: controllers make regular visits to banks to see if they comply with the rules set by Bank Al-Maghrib.
Banks which do not comply with banking regulations* may be penalized by Bank Al-Maghrib, also called “Banks policeman”. In fact, all citizens can safely deposit their money in any bank, and in case they feel aggrieved in their relationship with a bank, they may seize Bank Al-Maghrib to file a claim.