After a parliamentary process that lasted about two years, the new provisions of the law governing the Bank of Al-Maghrib's statutes came into force on 15 July. Details.
The bank account of Al-Maghrib 40-17 was approved by the Council of Government in August 2017 and passed all stages of the legislative process until it was published in the Official Gazette on July 15, 2019.
The irreparability of the wali post, the independence of the government, the strengthening of the financial health of the central bank, etc. Here is an overview of the major changes introduced in the new Bank of Al-Maghrib statutes.
Independence from politics and government
New statutes give Al-Maghrib Bank greater autonomy in monetary policy. From now on, the Bank independently determines and manages monetary policy. It sets the price stability objective as its main objective. A mission it performs with complete transparency within the Government's economic and financial policies.
The independence of Bank Al-Maghrib is secured by a ban on receiving or seeking guidance from the Government or any third party. In addition, the law makes it difficult for an incompatible regime to remove any influence and explicitly prohibits Wali, the CEO, other board members and all employees of the Bank from conflicts. interests.
In addition to strengthening its powers in defining monetary policy, the Central Bank has been given the mission to implement the exchange rate policy under the exchange rate regime, and to act upstream by giving its opinion on the guidelines set by the government in this area.
As part of its mission to hold and manage foreign exchange reserves in the country, Bank Al-Maghrib is empowered to mobilize them in support of the value of dirhams.
The central bank adapts monetary policy instruments to the specificities of new players, which are participating banks.
He is also entitled to request and obtain from any person or body any information and statistics necessary for his analytical work.
In addition to its core missions (issuing banknotes and coins, defining and implementing monetary policy, managing foreign exchange reserves, overseeing the banking system, etc.), the Bank has been entrusted with new responsibilities.
Al-Maghrib Bank has been explicitly entrusted with the mission of contributing to the country's financial stability. The Committee is based on the System Coordination and Risk Oversight Board established by the Banking Law and can take any action in this area, in particular to ensure urgent liquidity and the ability to assume roles in credit institutions in the context of managing systemic risks and resolving banking crises.
The Bank may also propose any other measure aimed at maintaining financial stability. The new provisions of the law also ensure efficiency in the decision-making process in crisis management.
The Central Bank has also been established as an authorized body for the processing (sorting and recycling) of fiduciary money entrusted to private operators, and has also been entrusted with the task of controlling the entire chain.
Finally, the contribution to the introduction of the National Financial Inclusion Strategy (SNIF) was explicitly transferred to Bank Al-Maghrib.
The irreconcilability of the Welsh position: a six-year term that can be renewed only once
The provisions of the new law further establish and strengthen the standards of good governance at Al-Maghrib Bank. Three committees became statutory:
– the audit committee directly attached to the board of the bank, in accordance with best practices observed in this area and two other committees, namely
– the monetary and financial committee and
– The Financial Stability Board, whose role is to assist Wali in areas directly related to the Bank's core missions.
With regard to the conditions for the appointment of six independent members of the Bank Council, three members are appointed on the proposal of Wali and three on the proposal of the entity in charge of finance, for a term of six years which cannot be renewed. These members must neither hold elective office nor be held accountable in public or private companies.
The Council's powers are being strengthened to include the possibility of:
• decide on any measure that may be applied in emergency or emergency situations;
• place any other instrument of intervention on the money market or on the stock market not provided for by law.
One of the major new features of the Bank's Articles of Association relates to the irreconcilability of the post of Al-Maghrib Wali for a specified period, which is considered sufficient to fulfill the strategic goals that are to be fulfilled in carrying out the Bank's missions. Bank (renewable once a year).
In this regard, the law provides for the hearing of Wali by specialized parliamentary committees, in accordance with the principle of accountability set out in the Constitution. In the absence or interference, the Managing Director is authorized to replace Wali. He is also authorized to dispatch current jobs in the case of a vacant Wali post.
On-site missions to the control are paid off
The new law stipulates that the Bank may decide, if necessary, to raise capital by including reserves and establish as many reserve funds as necessary. The state must pay the necessary amounts to meet any reduction affecting Al-Maghrib's capital.
The new statute also establishes an obligation for those under the control of Al-Maghrib Bank to pay a contribution to cover the costs inherent in on-site inspection missions.
Finally, the Bank now enjoys the general privilege of repaying its debts owing to credit institutions.