Moroccan Finance/Accounting Issues

From International Business Wiki

Finance in Morocco

Morocco has slowly tried to make economical choices that will improve the country’s poverty rates. has a strong backing through European and foreign banking institutions.In 1999, about 14% of the population was making under $2 a day. Although it takes time for a country’s economy to grow has chosen to try to decrease poverty by microfinance.Article 2 of ’s 1999 Microfinance Law defines micro-credit as “offerings of credit where the objective is to permit poor people to create or develop their own business producing goods or services, helping these people succeed economically.” There are many stipulations and restrictions that come along with something like this, you can read more at (http://www.bkam.ma/download/Etude/En/BULEC.PDF.pdf)

There are three main sectors that divide the way Finance works in – Commercial Banks, Financing Companies and Microfinance Institutions. Commercial Banks provide regular banking needs such as managing funds, distributing credit and accepting funds from the public.Financing Companies fall under licensed practices. They are not allowed to engage in activities unless their particular license permits them to do so.They also, cannot receive funds from the public for a term of less than 2 years. Microfinance Institutions have only the sole purpose of distributing micro-credits and cannot take any deposits.

All three of these sectors are regulated and run by the Ministry of Finance. They approve any licenses or registration that may be needed to run any of these three institution types.In the past year or so the Ministry of Finance has had a large impact on gender-budgeting and implementing equality for women and their human rights (www.gender-budgets.org). This will help the Moroccan government to pinpoint vulnerabilities in their financial system and also shows the desire for improvement throughout the country’s economy.