Moroccan Central Bank issues 12 disciplinary decisions to local banks for violation of rules

Source: Middle East Saudi Arabia

The Central Bank of Morocco (CBB) announced that it had 33 banking supervisory functions in 2018, resulting in 12 disciplinary and financial sanctions against banks in case of bankruptcy. irregularities.
Hiba Al-Zahawi, director of banking supervision at the Central Bank of Morocco, explained that a significant part of these sanctions was due to the violation of the requirements of the AML / CFT vigilance mechanism, mainly due to non-compliance. precautionary rules and the absence of internal control mechanisms in the area of ​​monitoring and risk management. .
Al-Zahawi, who spoke at the presentation of the annual report on financial supervision in Casablanca, continued major reforms in the Moroccan banking sector, including the entry into force of the international accounting standard. No. 9 in Morocco last year and the issuance of The Audit Committee, the Risk Committee, the conditions of offshore banks, CDG and microcredit badociations, as well as the procedures governing deposit insurance, including deposits with Islamic banks.
The central bank also issued a special note on the sale of the two securities (sale, with return of badets in case of repayment) in the field of real estate badets, a remedy that has been intensively used by banks and Moroccan real estate companies during the financial crisis experienced by real estate companies. Real estate sector. Al-Zahawi explained that this practice has resulted in an increase in the volume of real estate badets of Moroccan banks, because of the risks badociated with these badets.
The Bank has decided to subject these badets to 30% of their value if they are not sold within 4 years and has defined several measures to reduce the badociated risks, which will come into effect this year.
The Moroccan banking sector comprises 86 institutions, including 24 banks, the rest being specialized financing companies, mainly bank branches.
Moroccan banks are now available in 27 African countries and seven European countries, and a Moroccan banking group is expected to open a branch in China this year, the report said. Foreign subsidiaries have become the source of 30% of Moroccan banks' revenues.
Moroccan banks' total revenues amounted to 47.2 billion dirhams ($ 5 billion) in 2018, up 2.7%. The report indicated that the interest margin was the source of 72% of this income, while the margin on bank fees accounted for 15% and the results of market transactions (foreign exchange and bonds) accounted for 13%. %. The net profit of the Moroccan banks was 11.1 billion dirhams (1.5 billion dollars) during the same year, an increase of 2.9%, 29% of the African branches and 1% of the European branches .