Moroccan state-owned bank Credit Agricole (CAM) received the approval of the Ministry of Finance to open an Islamic subsidiary with The Islamic Development Bank (IDB). Credit Agricole will reportedly own 50% of the Islamic banking window as a joint venture with the IDB with an initial capital of 200 million dirhams. The two institutions have expressed plans to raise it to 400 million dirhams eventually. The central bank said earlier this year it had received seven requests to open Islamic banks and three to open windows selling Islamic finance products.
Moroccan state-owned bank Credit Agricole (CAM) has won authorisation to create an Islamic subsidiary with The Islamic Development Bank (IDB). Morocco’s central bank is in the final stages of launching an Islamic finance industry. The North African kingdom adopted legislation allowing Islamic banks and insurers in the domestic market, and the central bank has set up a central sharia board to oversee the new industry. IDB and CAM will inject 200 million dirhams ($20.55 million) of capital into the offshoot of the new subsidiary before doubling it to 400 million later. The Moroccan bank will hold 51% stake in the new banking unit.