Morocco's Largest Banks
From International Business Wiki
Morocco’s Largest Banks
by Saken Smailov
Morroco’s banking sector has significantly improved in the past few years and is now fairly developed and modern. The investment growth rate confirms the fact, showing the rate of 9.5% in 2006 against 6% in 2005 (www.bankalmaghrib.ma). Moreover, annual flows of FDI (Foreign Direct Investment) exceed now $700 billion and the total stock exceeds $6 billion (www.erf.org.eg). The improvement of the banking system mainly relies upon restructuring of capital markets, liberalization of financial transactions, and reform of banking legal framework (www.animaweb.org). The most important law that was passed on July 6, 1993, is the Banking Act of 1993. “It revoked the former regulations governing banking institutions, creating a unified legal framework governing the activity of all credit institutions while classifying the latter in the categories of banks and financing companies” (www.bankalmaghrib.ma). In other words, it reorganized the credit system and created regulations that were aimed at strengthening the financial system and protecting depositors and borrowers. The system consists of Bank Al-Maghrib, Attijariwafa Bank, Banque Centrale Populaire, 16 other commercial banks and 36 financing companies.
Bank Al-Maghrib is the central bank of that was established in 1959, with its main headquarters location in the city of . “The bank issues the Moroccan dirham, maintains Morocco’s foreign currency reserves, controls the credit supply, oversees the government’s specialized lending organizations, and regulates the commercial banking industry” (www.britannica. com). Holding reserves of foreign currency with an estimated worth of USD 14 billion (2003 worth), it has the sole privilege of note issue (www.bankalmaghrib.ma). Safeguarding currency stability and its convertibility, the bank acts as a financial agent of the treasury of . Thru successful business decisions by its Governor Mr. Abdel Latif Al Jewahiri, the Bank Al-Maghrib now holds 20 branches across .
Even though it was just recently established in 2004, Attijariwafa Bank is already the second largest bank in Morocco with almost USD 12 billion in sales for 2006 (wrightreports.ecnext.com). The bank was formed through a merger between Banque Commerciale du Maroc and Wafa Bank. Currently, it has about 500 branches across and points of sale in France, Belgium, Spain, Italy, China, Tunisia and Senegal. As the chairman of the board, Saad Bendidi continues expanding the bank and its services. Recently, he concluded its 10-year partnership with Western Union and has now applied for a banking license in . “In 2005, Attijariwafa bank accounted for 26.56% and 22.71% of total deposits and loans respectively in ” (www.zawya.com).
With the rapid increase in use of credit services, Banque Centrale Populaire became the third largest major bank in . According to total assets, it amounted to USD 9.4 billion by the end of 2006 (www.zawya.com). With over 6500 employees, the bank provides a range of financial services and products. More specifically, it provisions short, medium and long-term credit to businesses. Belonging to Groupe Banques Populaires, whose headquarters are located in , it maintains offices not only in , but overseas in Germany, England, Canada, Spain, France, Gibraltar, Netherlands and Belgium (www.wrightreports.ecnext.com). The bank was entirely owned by the government of until 2002. “BCP was wholly owned by the government of until 2002, when Banques Populaire Regionale acquired 21% of its shares. The bank was then publicly listed on the Casablanca Stock Exchange in 2004” (www.zawya.com).
References
Attijariwafa Bank. Business Overview. October 24, 2007. <http://www.zawya.com/cm/profile.cfm/cid4764/ricATW.CSE>.
Attijariwafa Bank. Company Profile Snapshot. October 24, 2007. <http://wrightreports.ecnext.com/comsite5/bin/comsite5.pl?page=report_description&report=COMPANY&cusip=C504A6270>.
Bank Al-Maghrib official website. October 24, 2007. <www.bankalmaghrib.ma>.
Banque Centrale Populaire. Business Overview. October 24, 2007. <http://www.zawya.com/cm/profile.cfm/cid109428/ricBCP.CSE>.
Bouoiyour, Jamal. “The Determining Factors of Foreign Direct Investment in ”. October 24, 2007. <http://www.erf.org.eg/tenthconf/Trade_Background/Bouoiyour.pdf>.
Britannica Encyclopedia. , Finance. Octobe 24, 2007. <http://www.britannica.com /eb/article-46579/Morocco>.
Country Perspetives – . “Finance & Banking System”. October 24, 2007. <http://www.animaweb.org/en/pays_maroc_financesbanques_en.php>.
