Morocco: Roles must be "clarified" to better supervise Islamic banking sector, says CESE
In Morocco, the Economic, Social and Environmental Council (CESE) delivered on August 28th its advice on the draft law regulating Islamic finance recently adopted by the parliament.In Morocco, the Economic, Social and Environmental Council (CESE) delivered on August 28th its advice on the draft law regulating Islamic finance recently adopted by the parliament.
The institution stresses the need to avoid unfair marketing practices by Islamic banks. It also believes that it is necessary to clarify the roles of the National Council of Ulemas and the Central Bank to supervise the sector, Magharebia newspaper reports.
CESE president Nizar Baraka stressed the importance of establishing Islamic banks, arguing that they will enhance the country's savings rate and increase the rate of access to banking services in Morocco, which currently stands at 57 per cent. "The aim is to increase this rate to reach two-thirds of the population," he said.
The Moroccan parliament adopted the draft law regulating Islamic finance in the country in July.
The state now allows Islamic finance institutions to be fully established in Morocco, provided they are subsidiaries of domestic or foreign banks.
The potential for Islamic finance is important in Morocco, with over 98 per cent of the population declaring themselves Muslims.