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Morocco Boosts Legal Framework for Banking Crisis Management
The Moroccan House of Representatives approved bill No. 87.21, amending the country’s banking laws and the statute of Bank Al‑Maghrib. The vote (66‑28) reflects a push to modernise the legal tools needed to prevent and resolve banking crises, especially for institutions deemed systemic. Minister Azzedine El Midaoui emphasized that the reform comes amid accelerating global financial inter‑connectivity and growing systemic‑risk concerns, aiming to give authorities early‑intervention powers, clearer governance rules, and a more robust deposit‑guarantee fund framework.
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Morocco Strengthens Banking Crisis Management Framework
The Moroccan House of Representatives approved bill No. 87.21 on Tuesday, amending Law No. 103.12 on credit institutions and Law No. 40.17 governing Bank Al‑Maghrib. The vote count was 66 in favor and 28 against.
Minister of Higher Education, Scientific Research and Innovation, Azzedine El Midaoui, explained that the legislation comes at a time when both domestic and global financial systems face heightened risk‑management needs, especially for banks that are systemic or whose failure could threaten financial stability.
In a statement read on behalf of the Minister of Economy and Finance, El Midaoui highlighted the rapid economic and financial transformations worldwide, the growing interconnectedness of markets, and the necessity for robust legal and regulatory tools to prevent and mitigate crises.
Key objectives of the bill include:
- Enhancing governance and transparency in the granting and withdrawal of banking licences.
- Clarifying definitions related to systemic risk and financial stability.
- Defining the role of the Deposit Guarantee Fund and crisis‑resolution financing as a multi‑source contributor.
- Establishing earlier intervention mechanisms and more efficient resolution procedures to safeguard the banking sector’s stability.
These measures aim to equip Moroccan authorities with the legal means to address difficulties faced by credit institutions promptly, thereby preserving the sector’s vital functions.