Morocco permits commercial banks to market Islamic banking products
2007-03-23
Moroccan banks are expected in the coming weeks to begin marketing three new forms of Islamic financing, recently authorised by the Central Bank. They include musharaka, murabaha and ijara products.
By Mawassi Lahcen for Magharebia in Casablanca -- 23/03/07
 [Mawassi Lahcen] Moroccan Central Bank Governor Abdellatif Jouahri |
The Moroccan Central Bank raised the idea of licensing Islamic financial products two years ago in response to the development of illegal banking channels which escaped official oversight. In recent years, the government has observed an increase in fundamentalist movements offering interest-free loans and alternative forms of funding, particularly in residential finance. The appeal of this type of finance is that it is believed to conform with Islamic Sharia, which forbids any financial transaction with interest. Because these practices exist outside the purview of monitoring by financial authorities, they are open to exploitation for money laundering or for funding criminal or terrorist activities.
At a press conference last Tuesday (March 23rd) in Rabat, Moroccan Central Bank Governor Abdellatif Jouahri said the authorised financing products are a response to the request of citizens who prefer to conduct transactions with no interest, and that they will help integrate these citizens into the official financial system. Jouahri explained that the three forms approved are known worldwide and are authorised by major European and US banks under the terms "leasing" (ijara), "sale on profit" (murabaha) and "joint venture" (for musharaka). He added that these forms of financing meet the standards established by the global Islamic organisations which specialise in this field and of which Morocco is an observer member.
"We chose to authorise these [programmes], and decided they… shall be offered by established commercial banks in the manner of traditional financial and banking products. Our position is clear. There will be neither Islamic banks nor non-Islamic banks in Morocco. And there won’t be any discrimination among Moroccans," Jouahri said,
The Central Bank left it up to each bank to choose the manner it deems most appropriate for marketing these products, either through its regular agencies or at special windows or through specialised branches. Moroccan commercial banks may establish their specialised branches in partnership with foreign banking institutions.
Jouahri noted that the newly authorised financial products were concerned solely with financing and not banking deposits. He said 53% of currency deposits at Moroccan banks were in the form of non-performing deposits, and there is thus no reason for citizens who prefer to conduct transactions with no interest to have reservations about banking deposits.
In a statement to Magharebia, Saadeddin Othmani, Secretary-General of the moderate Islamic Justice and Development Party, described this step as positive, since it expands financing options available to citizens and grants them greater freedom. "This step was anticipated and necessary. The Moroccan economy can’t be competitive unless it contains multiple and diverse financing methods," he said. "We can’t be locked into a single financing method. If European nations and European and American banks preceded us in authorising financial products such as these, I don’t know why Moroccan banks delayed all this time."
Email to a friend
Print version
lotfi Posted 2007-03-23
How can we do when it gets to buying a house?
BEN Posted 2007-03-25
What is most surprising in your article is this statement on a very old issue, whereas Morocco had been among the first initiators of a move that is common elsewhere... Just, what about those billions left to the banks for those who refused to receive productive interests contrary to their religious ethics? Could this explain that?
na mo Posted 2007-03-25
Salam, first of all, we know that banking policy is still based on benefit, i.e. there are revenues and incomes which lead us to the principle of revenue. However, if the revenue is positive, the banking transactions become prosperous. So there's no way to think of banks, of any nature, offering services without fees. As we're facing quasi-companies offering financial solutions to their clients, and just thinking of the salaries of their employees and expensive transactions, we understand that the banking system is based on profit, and generally the problem is not that with interest or without interest it is Islamic or secular, we have to focus our research on the foreign currencies both entering and issued by the banks and whether they're fitting the Moroccan economy namely because we know the stagnancy of the Moroccan economy and all its problems of favouritism, bribery, corruption and abuse of power...The citizen is poor while the wealth of the kingdom is deposited in foreign banks. So what's the use of talking about Islamic bank or whatever the name if this is the situation. We all know that Islamic banks can be financed by suspect sources or institutes belonging to them, so we shouldn't stick to what they say but we have to stick to what we see, live and endure...
beekeeper Posted 2007-03-25
Salam Alekum. It was only when these so-called monetary authorities in our country realized that the situation was getting out of control that they decided to give in. First, I think it will only be an illusion and that commercial banks will only put forward traditional banking products under another name. Second, it is more a financial and security problem than the wish to meet Moroccan consumers' satisfaction. Monetary authorities are looking for a way to track money flows and to preserve their monopoly. Third, it has nothing to do with these so-called "new products". Our banks will carry on plundering account holders. When opening an account in any Moroccan commercial bank, people will realize that their capital crumbles away (charges and stuff...), whereas in other countries, where competition is a fact and not only a theory, a deposit account doesn't cost a thing (cheque books, cards, all is free) and some banks even pay interests on deposits. Lastly, there is so much to say on this matter, I'll quit here. Sorry for the lack of accents and for this long reading.
Soundous Posted 2007-04-06
Salaam. As the country opted for liberalism and openness, it has to leave some free space to foreign ordinary or Islamic banks to act and present their banking products, so that Moroccan customers and citizens can have a great choice and feel free to choose the best product, at the lowest possible rate, and thus get the required satisfaction according to economic rules.
mery Posted 2007-04-22
Salam Alaikom, I am so happy that we will “finally” be able to choose the way we want to finance our acquisitions, after having been obliged to accept the products the traditional banks offered us. And, I hope with all my heart for the establishment of several Islamic banks that will also work in Morocco. Long live the freedom of choice!! Thank you and let’s hope it succeeds.
Claude d'Almeida Posted 2007-05-07
Thank you for this information. I think that its necessary to relay this message to francophone countries that have opted specifically for Islamic banks rather than this form of commerce (open to all banks). Thank you again.
mehdi Posted 2007-05-10
salamo 3laykom, in the first i wanna to give my regards to Mr, Abdellatif Jouahri, and to say thinks for this, every one of us deam to have a way of his life and to keep his "akhira" in the last we find this way to improve our life and i hope to improve this way for not face the bad things on it, at all i find this the first strap of our country. goodluck
Berrada Posted 2007-05-10
Is a date set to market these Islamic products? Or is this just a load of hooey?
makhloufi Posted 2007-06-24
Is there a date set for the commercialization of Islamic products?
omar Posted 2007-09-12
your article dated march 23rd,2007 mentions that the moroccan banks will start marketing islamic banking in the next few weeks...it's been six months since this bla..bla...bla...
abdeljalil Posted 2007-10-02
assalamu alaykoum,i appreciate to give me the name of the islamic bank in morocco and if you 've an idea of their policies. wa jazakoum allah
rachid Posted 2007-10-04
Finally!!!!!!!!!!
ALI Posted 2007-10-16
Hello, All things being said, is the Islamic Bank of Morocco open yet or not?
Mohamed Najam Posted 2007-10-22
Assalamu Alaikum, I first applaude the Moroccan Central Bank for finally deciding to allow Islamic financial Products to become available for Moroccan consumers. Islamic financing is the fastest growing sectors in modern finance. It is no surprise that the largest leading financial institutuions are embracing Islamic products. For those who beleive in the free market, this can only increase competitition and lower costs of financing, but also give a boost to the Moroccan economy through the conversion of idle deposits into prosperous investments. On the other hand, this conforms with our Islamic principles and will give a chance to those who were left out from participation in the development of the Moroccan economy due to their religious convictions to finally join the others. We should not rush to judgement, but rather be hopeful that this bold step taken by the Moroccan Central Bank will truley enable many Moroccans to reconcile between their religious beleifs and the desire to invest.
avicenn Posted 2007-10-25
Hello, Islamic banking products are already available at certain banks (for example: Attijari Wafa Bank) and they are offering two plans: miftah elfath and miftah alkhayr. -Sincerely
fati Posted 2007-11-22
Hello, Is the Islamic Bank of Morocco open yet or not? If not, when?
kareem Posted 2007-12-05
hello my name is kareem i am interessed to buy apprtment , i would like to know , if i can get loan from islamic bank in morocco thanks
زيد Posted 2008-01-02
Praise be to God...Thanks in advance to all those who contributed to the idea os establishing this Islamic bank. I hope that this will be serious.
DIDO Posted 2008-01-07
Hello, As the former director at a credit bank Morocco, I am so glad to hear that Islamic banking products have finally been put on the market. But our real horizon lies in realising a universal Islamic bank. Such an establishment in Morocco would encourage me to join in and to defend it with all of the expertise I acquired at my former bank.
radouane laalej Posted 2008-02-05
thanks again please forward me any info regarding this halal salaf .
عصام Posted 2008-02-07
Salam alaikoum. Can you provide me with the address of the Islamic bank in Morocco? Thank you.
أمل Posted 2008-02-11
Salam alaikoum. We thank the Moroccan central bank for its decision. Our real hope now is the establishment of an Islamic bank to make a big category of the Moroccan society contribute to the development of the economy.
said Posted 2008-02-23
Salam alaikoum. Has anyone tried these type of finance yet? And if is it offered by regular banks as an option or special islamic bank. wa jazakoum allah khayran.
UPSON Posted 2008-02-28
I want to know if i can transfer money out of morroco and what dose it take. Regards, Upson.
nabil Posted 2008-03-04
These Islamic banking products are still vague. There is a lack of information. I do not think there has been any news on them. It is also the same thing with ordinary products at ordinary banks. Thus, the bank orders are always the same.
ahmed Posted 2008-03-11
Assalamo alykoum wa rahmato Allah Just get on with it and start advertising that product for us, Jazakomo Allaho khayran
جمعة Posted 2008-03-24
Salam alaikoum. What is the authorized amount the Islamic bank can lend to a Moroccan citizen and foreign investor? Thank you. Please reply.
abdellah Posted 2008-03-30
Hello, Can you give us the name of the Islamic bank in Morocco and—if you know them—their regulations too?
nadia Posted 2008-04-01
Hello, This is good news for all of us. I hope that this project will come to light as soon as possible and that it is not just a bunch of talk.
f.zeyani Posted 2008-04-11
assalamoe alaikuum dear brothers and sisters in islam. its nice too hear the good news but in morocco is the information is minimaal and the banks are not happy i lifi in holland and have makes manny calls for information but no result i hope in the summer whil get the information and is et halal or not. i hope that islamic banking whil grow insallah taht our dream. wa jazakuum allahoe gairan. we steel hope for more insallah
khadija Posted 2008-04-14
salam alaykom, it is really a relief to have islamic banking in Morocco. but it is now one year and there is no sign for the existence of these banks.
الهاشمي Posted 2008-04-14
I am very happy this type of financing has seen the light of day.
الهاشمي Posted 2008-04-15
Hello, I would like to know whether there is an Islamic bank in Marrakesh. If so, what is its address? Thank you
رشيد Posted 2008-05-21
My Moroccan brothers, wake up from your long expectation for the birth of an Islamic bank in Morocco, because those who have financial interests, i.e. Moroccan banks are concerned about their credibility and transparency and have not reached a solution. But we refer them to God. Conscience is dead, they love making profit and don’t like doing good deeds.
عبد الوكيل Posted 2008-06-01
Peace, mercy and the blessings of God be upon you. I hope that such banks will be available in our dear country so that both parties can take advantage of this.
محمد Posted 2008-07-04
Salam alaikum. I want to know the name of Islamic banks in Morocco. May God reward you with good.
sarah Posted 2008-08-16
What should we do in order to purchase a home?
najat Posted 2008-08-20
please i would like to know if there is an islamic bank in morocco. if yes tell me about the address because i want to buy a flat without interest
We welcome your comments on Magharebia's articles.
It is our hope that you will use this forum to interact with other readers across the Maghreb. In order to keep this experience interesting, we ask you to follow the rules outlined in the comments policy. By submitting comments, you are consenting to these rules. While Magharebia.com encourages discussion on all subjects, including sensitive ones, the comments posted are solely the views of those submitting them. Magharebia.com does not necessarily endorse or agree with the ideas, views, or opinions voiced in these comments. This is a moderated forum. Comments deemed abusive, offensive, or those containing profanity may not be published.
Magharebia's Comments Policy