Morocco: BMCE bank ready to get into Islamic finance

Oct 31, 2014

By the end of the year, the Moroccan parliament will vote on a new bill to regulate Islamic finance and sukuk issues, enabling an increase in the Islamic finance offering.

By the end of the year, the Moroccan parliament will vote on a new bill to regulate Islamic finance and sukuk issues, enabling an increase in the Islamic finance offering.

The
Banque Marocaine du Commerce Extérieur (BMCE) has already announced it would position itself on this market: it is planning to launch a subsidiary as a joint venture with “a major Islamic financial institution from the Middle East”.

The partner’s name has yet to be communicated. It should be revealed once the bill has been voted. The joint venture will then go to the central bank for approval.

According to Najib Boulif, minister for general affairs and governance, “a gradual introduction of Islamic banks to preserve the competitiveness of existing, conventional, banks”.

Mohamed Damak, an analyst for rating agency Standard & Poor’s, announced a few years ago that within five years, Islamic finance could make up 10 to 20 percent of the Moroccan banking system.ADNFCR-2976-ID-801757641-ADNFCR