Join on WhatsApp
Join on Telegram
Rabat – Morocco’s House of Representatives approved a draft law on Tuesday aimed at strengthening oversight and crisis management in the banking sector.
The bill, Law No. 87.21, amends Law No. 103.12 on credit institutions and similar bodies, as well as Law No. 40.17 related to the statutes of Bank Al-Maghrib, Morocco’s central bank.
The draft law was passed with 66 votes in favor and 28 against during a legislative session.
Speaking on behalf of Minister of Economy and Finance Nadia Fettah, Minister of Higher Education, Scientific Research, and Innovation Azzedine El Midaoui said the reform comes amid growing national and international concerns over financial risks that could affect banks, especially major institutions whose failure could threaten financial stability.
He said the project also reflects rapid global economic and financial changes, including stronger links between financial systems and the increasing need for legal frameworks capable of responding to crises and limiting their impact.
The law seeks to strengthen Morocco’s legal framework for handling difficulties credit institutions face by introducing more effective early intervention and resolution mechanisms, the minister added. It also aims to provide authorities with stronger legal and regulatory tools to preserve banking sector stability and ensure the continuity of key financial services.
The Finance and Economic Development Committee in the House of Representatives had previously approved the bill after introducing several amendments.
These changes focused on strengthening governance and transparency conditions related to granting and withdrawing licenses for credit institutions, clarifying concepts linked to systemic risks and financial stability, and defining the role of the Deposit Guarantee Fund in financing crisis resolution measures through a multi-source funding approach.
MWN with MAP
