Morocco

BMCE et Al Baraka Bank lanceront une banque "halal" en Maroc en 2016

La Banque marocaine du commerce extérieur (BMCE) et le groupe bahreïni Al Baraka Banking Group projettent d’ouvrir une banque islamique au Maroc dans les prochains mois. Le PDG du groupe bancaire bahreïni, Adnan Ahmed Yousif, a déclaré que la future banque sera détenue à parts égales par la Banque marocaine du commerce extérieur (BMCE) et Al Baraka. L'institution ouvrira ses portes durant le premier trimestre 2016. Il a également ajouté que la nouvelle banque couvrira un réseau de 20 branches au cours de ses cinq premières années d’activité. Rappelons que le parlement marocain a adopté en novembre 2014 la loi n° 103.12 qui autorise les institutions bancaires locales et étrangères à créer des banques participatives (islamiques) au Maroc.

Al Baraka to open Morocco bank in 2016

Bahrain-based Al Baraka Banking Group plans to launch an Islamic bank in Morocco early next year after receiving approval from the country's central bank, and is looking to expand into East Africa, chief executive Adnan Ahmed Yousif said. The new bank will be equally owned by Al Baraka and Banque marocaine du commerce extérieur (BMCE), and will start operations in the first quarter of 2016. He said the new bank would open 20 branches in its first five years of business. The chief executive also said the group is considering expanding into East Africa because the banking system there is similar to that of the Gulf region, and was currently exploring opportunities in Kenya. Besides, the bank also plans to grow its operations in Egypt.

Gassner's picture

The lack of equity finance - really a problem of moral hazard?

Michael Gassner, Editor of IslamicFinance.de presented on the 3ème Congrès International de la Finance Islamique “Les Banques Islamiques et le Financement des Entreprises: Pratiques et enjeux théoriques” en Marrakech, 25/26 Mai 2015.

The presentation discussed that exponential growth of debt in Islamic finance is ruled out, nevertheless, debt and equity finance exists. The specific significance of equity finance (musharaka, mudaraba) lies in need for solid debt/equity ratio, as Muslims shall never die being in debt. Still Islamic banks barely provide any equity finance and the reason often given are moral hazard costs. This is denied as debt as well as equity has specific moral hazard problems, and if anything, even conventional banks would offer a mixture of debt and equity. Rather the assumed reason appears to be in the regulation (capital weight) and taxation (interest deductibility), which makes equity financing from a bank 2-4 times at least more expensive than debt finance, and thus not worth being offered.

The attached presentation is in French.

UPDATE 1-Morocco adopts draft law regulating Islamic insurance

Morocco's government adopted a bill on Thursday to regulate Islamic insurance, legislation that will face a final vote by parliament later this year. It is the last step in Morocco's legislative package to regulate the country's fledgling Islamic finance industry. Earlier this year, it issued a decree allowing the creation of a sharia board to oversee the sector. The bill adopted by the government goes into details on authorisations, takaful and retakaful products and operating process. Sharia-compliant insurance will be overseen by the same sharia board of Islamic scholars in charge of Islamic banking. The bill also includes some amendments of the law regulating the conventional insurance sector.

Morocco Well-placed to Offer Platform for Islamic Banks- Minister

Thanks to its economic diversity and proximity to Europe, Morocco is well-placed to offer a platform for Islamic banks, Lahcen Daoudi, Minister of Higher Education and Scientific Research said. Speaking at a conference organized by the national school of commerce and management (ENCG) in Tangier under the theme: “the foundations of Islamic banks” the Minister said that Islamic banks are considered as a source of wealth for Morocco that will contribute by 0.5% to 1% in PIB per year. As for human resources, the minister affirmed that the staff working in other banks will not find difficulties in joining Islamic banks.

Emirates Islamic Bank envisage de s'implanter au Maroc et en Egypte

Emirates Islamic Bank prévoit de s’implanter au Maroc et en Egypte au cours des deux prochaines années pour saisir les énormes opportunités qui se présentent sur ces deux marchés dans le segment de la finance halal. Le groupe bancaire compte se positionner dans les marchés marocain et égyptien en acquérant des banques existantes ou en demandant de nouvelles licences. A noter qu’une loi sur les banques islamiques a été adoptée en novembre 2014 par le parlement marocain. La Banque centrale marocaine a annoncé récemment avoir déjà reçu 15 demandes de licences émanant d’autant de banques islamiques étrangères.

Les textes de loi relatifs à la Finance Islamique au Maroc

La loi n° 103.12 relative aux établissements de crédit et organismes assimilés introduit les banques participatives dans le code bancaire à travers la mise en place de nouveaux fondements reposant sur les principes de partage des gains et des pertes, en faisant appel exclusivement au Conseil Supérieur des Oulémas pour donner ses avis de conformité. Le texte pose le cadre réglementaire pour la création, le fonctionnement et les activités de banques participatives et définit les points concernant le domaine d’application, les dépôts et les produits commercialisés par les banques participatives. La loi n° 103.12 s’applique aux établissements de crédit et organismes assimilés.

Emirates Islamic Bank to Open Branches in Morocco

Emirates Islamic Bank (EIB) is willing to invest in the Moroccan Islamic banking sector in the two upcoming years. EIB’s CEO, Jamal Bin Ghalaita, said the bank is planning to explore the potentials of the Moroccan Islamic finance through a policy of acquisitions and obtaining operating licenses from regulating authorities. He added that the Moroccan Islamic banking market is among the markets with the greatest potentials for Islamic banking outside the GCC. Ghalaita also said the bank has the same planned investments in other countries with strong economic ties with the United Arab Emirates and GCC countries. He said the bank is also assessing opportunities for expansion in the coming period in Egypt and Turkey.

Morocco lures Sharia cash with first Islamic bank

Morocco is poised to have its first full-fledged Islamic bank as early as September. Dar Assafaa, an affiliate of the country’s largest lender AttijariWafa Bank, will probably become the nation’s first wholly Sharia-compliant financial institution when the central bank approves its switch. The country’s Islamic finance bill, which came into force on January 30, also allows for the formation of a centralised Sharia board to oversee Islamic banks. The Moroccan Association of Participative Financiers estimates total investment in Sharia-compliant products in the country will reach $7 billion by 2018.

Morocco, Most Indebted Arab and African Country: McKinsey

According to a new report by McKinsey Global Institute, Morocco is the most indebted among Arab and African countries. The kingdom’s debt-to-GDP ratio stands at 136 % or an increase by 20 percentage points of GDP. The analysis focuses on the debt of the “real economy”: governments, nonfinancial corporations, and households. The report has revealed that debt-to- GDP ratios have increased in all 22 advanced economies reviewed by the study. Morocco comes ahead of both Egypt and Saudi Arabia which have actually succeeded in reducing their debts. The report has also found that global debt has grown by $57 trillion or 17 percentage points of GDP since 2007, to stand at $199 trillion, equivalent to 286% of GDP.

Morocco to create sharia board to oversee Islamic finance: decree

Morocco is to create a sharia board of Islamic scholars to oversee the country's fledgling Islamic finance industry. Called the Sharia Committee for Participative Finances, the board will be composed of 10 Islamic scholars plus at least five financial experts. The members of the committee will be named by the president of the country’s Islamic Scholars Council, the bulletin said. The board will approve the conformity of the Islamic products proposed by the participative banks, as they will be known under the legislation, and insurance (takaful) to sharia law. It will also oversee the central bank decisions regarding the participative finances sector.

Morocco issues decree to create sharia board for Islamic finance

Morocco has issued a royal decree to create a sharia board of Islamic scholars to oversee the country's fledgling Islamic finance industry. Called the Sharia Committee for Participative Finances, it will be composed of 10 Islamic scholars and financial experts, the country's official bulletin said. The members of the committee will be named by the president of the country's Islamic scholars council. The board will approve the conformity of the Islamic products proposed by the participative banks, as they will be known under the legislation, and insurance (takaful) to sharia law. It will also oversee the central bank decisions regarding the participative finances sector.

A dozen Islamic banks seek licences in Morocco

Bank Al-Maghrib, Morocco’s central bank, has reportedly received several requests for approval from Islamic banks from the Gulf countries. Al Baraka Bank (Bahrain), the Kuwait Investment Bank and the National Bank of Qatar are among those banks that wish to settle in Morocco. Some of these institutions have already established agreements with local credit institutions like Bahraini bank Al Baraka Bank. Banque Centrale Populaire (BCP) has, meanwhile, last year signed a strategic partnership in the field of Islamic finance with Guidance Financial Group (GFG), a subsidiary of Barwa Qatari sovereign wealth fund. The Moroccan banking group Attijariwafa Bank, however, has announced in late January that it has intended to develop its subsidiary dedicated to Islamic finance Dar Assafaa without an alliance with a foreign partner.

Morocco: Dar Assafaa to become an Islamic bank

The Moroccan banking group Attijariwafa Bank plans to transform its subsidiary Dar Assafaa into an Islamic financial institution according to the group’s CEO Kettani. In this context, the banking group belonging to the Royal Holding SNI plans to increase the capital of Dar Assafaa to $ 18.40 million, and will inject more investments according to the development of this new market in Morocco. Attijariwafa Bank will develop its own participatory bank without foreign partnership, unlike Banque Centrale Populaire and BMCE Bank which have opted for the creation of joint ventures with foreign Islamic banks. Moreover, the institution will expand its range of products.

Une dizaine de demandes d’agréments chez Bank Al-Maghrib

Une dizaine de demandes d’agrément ont été soumises à Bank Al-Maghrib par des institutions jugées leaders dans l’industrie de la finance islamique. Ces institutions viennent essentiellement d’Asie, plus particulièrement du Moyen-Orient. Une bonne partie de ces institutions ont l’intention de créer des joint-ventures avec des banques marocaines. Certaines se sont déjà engagées avec des accords, d’autres sont toujours en négociation. Le PDG d’Al Baraka Banking Group Adnan Ahmed Yousif avait lui aussi confirmé un projet de banque islamique au Maroc avec un partenaire local. Concernant Attijariwafa bank, le groupe est toujours sollicité par les leaders mondiaux de la finance islamique.

Shari'a scholars from Morocco meet CBB Governor

A nine member delegation comprising of leading Shari'a scholars from Morocco met with Mr. Rasheed Al Maraj, Governor of the Central Bank of Bahrain. The visiting delegation wants to learn from the Bahrain experience in Islamic finance. Mr. Al Maraj welcomed the eminent scholars and assured them of CBB's full support in their Islamic finance journey. During their three day visit the delegation met with the CBB officials, leading Shari'a scholars in Bahrain and global Islamic finance bodies such as AAOIFI, IIFM and CIBAFI. Morocco has been gearing up to offer Islamic financial services in the wake of strong domestic demand.

INTERVIEW-Bahrain's Al Baraka to open Islamic bank in Morocco

Bahrain-based Al Baraka Banking Group plans to set up an Islamic bank in Morocco next year with a capital of USD 50 million, CEO Adnan Ahmed Yousif said. Last month, Morocco's parliament gave final approval to an Islamic finance bill that allows foreign banks and local lenders to set up Islamic banks in the North African country. Yousif declined to name the potential partners, but said the new bank would be established in 2015 with a plan to open 10 branches in the first year of operations. He said Al Baraka expected to record growth of 12% in assets, of 11% in deposits and of 10% in income during 2015.

BMCE Bank to Create New Subsidiary Specializing in Islamic Finance

BMCE bank is reportedly planning to create a new subsidiary specializing in Islamic finance. The group owned by the Othman Benjelloun, Morocco’s richest man, will embark on a joint venture with Saudi Arabia’s Al Baraka Banking Group to create a new subsidiary specializing in Islamic finance. Al Baraka Banking Group will reportedly hold 51% of the new subsidiary while the Moroccan bank BMCE will hold the remaining 49%. Several BMCE executives have received training on Islamic finance in Jordan and Turkey. The step follows the adoption of the law authorizing the creation of participatory banking by the parliament.

Finance islamique au Maroc : la loi enfin votée

Le 25 novembre dernier, après plus de deux années d’attente, le projet de loi n° 103.12 relatif aux établissements de crédit et organismes assimilés a été adopté à Rabat. Il définit le statut des banques islamiques au Maroc et précise les produits qui pourront y être commercialisés. La loi va permettre non seulement la création d’institutions dites "participatives" mais aussi aux entreprises marocaines qui le souhaitent de se financer via des émissions de sukuk. En faisant le choix d’offrir un cadre législatif adapté aux spécificités de la finance participative, le Maroc met tout en œuvre pour assurer un développement pérenne sur son sol.

Morocco Islamic Finance 2014: Unlocking the Kingdom's Potential

"The Morocco Islamic Finance 2014: Unlocking The kingdom's Potential" is written and produced by Thomson Reuters, Islamic Research and Training Institute (IRTI), and the General Council for Islamic Banks and Financial Institutions (CIBAFI). The report provides substantive due diligence on the opportunities for Islamic financial services in Morocco. There are a lot of expectations of Islamic finance in the Kingdom of Morocco, and the Morocco report breaks these down and presents a forward-looking analysis of potential Islamic banking assets and investment opportunities. The national retail consumer survey indicates Moroccan Islamic banking assets could potentially reach up to 5% of total banking assets by 2018.

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