2000年-世界发展银行全球_Morocco___Financial_Sector_Strategy_Note_64页_4mb

Summary of the Kingdom of Morocco Financial Sector Strategy Note

Core Content

This document provides an analysis of the financial sector reforms in Morocco from 1990 to 1998, and outlines key recommendations for further development. It is part of a World Bank report, focusing on the banking system, government securities market, payments system, mutual funds, and the stock exchange. The report was prepared in response to the request of Moroccan authorities and includes detailed data and recommendations.

Main Reforms and Developments

1990-1998 Reforms

• Banking Sector Reforms (1991-1995):

  • Elimination of credit ceilings.
  • Interest rate liberalization.
  • Adoption of a new Banking Law in 1993.
  • Gradual elimination of mandatory holdings of government securities (PEP).
  • Strengthening of prudential regulation in line with international standards.

• Capital Market Development:

  • Legal and regulatory framework established for stock market operations and mutual funds.
  • Introduction of marketable securities (TCN) law.

• Recent Focus:

  • Institutional savings mechanisms (pension funds and insurance companies) as part of a 1998 Bank-financed project.

Financial Sector Performance

• Banking System:

  • Bank loans and assets represented 48% and 86% of GDP, respectively, at the end of 1998.
  • Banks control 80% of leasing companies, manage 70% of mutual fund assets, and own 10 of 15 securities firms.
  • Bank shares account for about 30% of the Casablanca stock exchange.

• Credit to the Private Sector:

  • Expanded significantly from 25% to 48% of GDP between 1993 and 1998.
  • Government financing still absorbs a large part of medium and long-term loanable funds (23% of bank assets).
  • Outstanding loans by finance companies are equivalent to about 12% of total bank credit.

• Capital Adequacy:

  • The banking system has a relatively adequate capital base, with an average capital adequacy ratio in excess of 12%.
  • Specialized banks, especially CNCA, are weaker, accounting for 50% of total loans in arrears.

• Interest Rates and Lending:

  • Bank lending rates do not respond quickly to market conditions.
  • The current auction mechanism has led to a segmented allocation of Treasury securities.
  • Secondary market activity and proper valuation of securities are still lacking.

• Payments System:

  • Risk is low due to intrabank checks (40% of all checks cashed) and mandatory reserves (10% of demand deposits).
  • Commercial banks maintain substantial portfolios of treasury securities to cover possible debit positions.

• Government Securities Market:

  • Domestic debt management has focused on meeting financing needs rather than minimizing borrowing costs.
  • Short-term securities have seen increased use, with short-term issues accounting for 27% in 1997 and 38% in 1999.
  • Long-term securities dominate due to the lack of short-term buyers.

• Capital Market:

  • Stock market development has been driven by privatization.
  • Only five initial public offerings (IPOs) by private non-financial enterprises have occurred since 1993.
  • Mutual fund assets reached DH 38 billion by the end of 1999.
  • Mutual funds are dominated by bond and balanced bond/equity funds due to lack of new share issues.

• Savings and Investment:

  • Gross national savings stood at 17.7% of GDP in 1998, stagnant for 15 years.
  • Savings are mainly in the form of liquid assets (demand and term deposits <1 year), accounting for 65% of financial assets held by non-financial agents.
  • Market penetration by banks is slow, with only 37% of the working population covered in 1997.

Key Recommendations

• Reduce Intermediation Costs:

  • Gradually increase capital adequacy ratio and allow access to second-tier capital.
  • Reduce mandatory non-interest bearing reserves.
  • Modernize the payments system with an electronic interbank clearing and settlement system.

• Improve Prudential Regulation and Financial Disclosure:

  • Adopt and implement new international accounting standards.
  • Introduce clear rules on loan write-offs.
  • Monitor prudential regulation on a consolidated basis.
  • Restrict Central Bank ownership of shares in regulated banks.
  • Upgrade Central Bank's information systems and revise reporting requirements.

• Increase Competition:

  • Remove interest payment restrictions on household checking accounts.
  • Liberalize indexed rates on passbook savings accounts.
  • Revise foreign exchange transaction regulations to deepen the domestic market.

• Promote Market-Based Interest Rates and Reform the Government Securities Market:

  • Improve Treasury securities programming and introduce firm commitments.
  • Minimize borrowing costs and increase short-term securities.
  • Reform auction mechanism to limit multiple securities and balance supply and demand.
  • Develop homogeneous securities through benchmark issuance.
  • Consider market-based proposals to consolidate existing securities.
  • Ensure Central Bank oversight of the new central depository for Government securities.
  • Support repo transactions with standard contracts.

• Accelerate Capital Market Development:

  • Improve mutual fund regulation, especially regarding fiduciary responsibilities and asset valuation.
  • Grant the Securities Commission enforcement authority for prudential rules and investor protection.
  • Introduce a real-time gross settlement system for high-value assets.
  • Consider tax incentives to attract new enterprises to the stock market.

Recent Developments

• Banking Sector:

  • A 1998 decree authorized banks to provide social housing credit with prompt foreclosure powers.
  • Banks will soon submit consolidated financial statements for updated supervision.

• Payments System Modernization:

  • The Central Bank and the Bankers' Association are working on a project to modernize the payments system.

• Treasury Securities Market:

  • A comprehensive modernization program has been proposed, covering auction transactions, assimilation, and secondary market activities.
  • The Treasury is moving toward increased use of short-term securities.

• Capital Market:

  • A draft law on third-party portfolio management is being finalized.
  • SBVC's commission structure has been revised to reduce entry barriers, but with limits on the use of stock exchange earnings.

Conclusion

Moroccan financial sector reforms have led to increased market operation and financial intermediation, but the sector remains underdeveloped compared to its regional counterparts. The main challenges include low savings rates, limited capital market development, and high interest rate sensitivity of banks. The recommendations aim to address these issues through improved regulation, increased competition, and market-based reforms.