A study acknowledges BAM's role in improving competition within the Moroccan banking sector
The strong competition that prevailed in the Moroccan banking sector between 2005 and 2011 led to a sharp decline in interest rates and fees, according to a new study by auditing firm Mazars.The report commends the role of Bank Al-Maghrib (BAM) in improving competition, through banking supervision, regulation of the sector and efforts to improve financial inclusion.
Mazars welcomes the publication by the Central Bank of an annual report on the situation of banks and commends the institution for imposing banks to offer several free services, thus pushing them to be more transparent about their prices.
However, the study notes that the low banking rate in Morocco (about 54 per cent) negatively impacts competition between banks, forcing some of them to opt for the internationalisation of their activities in order to find new growth.
Mazars encouraged banks to continue their efforts to improve pricing transparency and facilitate client mobility between banks.