Lhe Fineopolis Al Maali firm recently carried out an assessment of the first 5 years of activity of participatory banks in Morocco. “It is important to note that the public authorities have made considerable efforts to set up an almost complete regulatory ecosystem in such a short time. In this regard, it is important to note that the case of Morocco is already considered an inspiring “success story”, and that many countries in Africa and elsewhere are watching with great interest. , explain the authors of this report.
In terms of prospects, the years to come will certainly be more oriented towards expanding the offer of companies, whether in terms of financing products and banking services or in terms of support in sharia-compliant structured financing or in terms of Sukuk emissions. According to the report, participatory banks and windows opened 33 new branches per year on average over the period 2017 – 2021. According to the latest Bank Al-Maghrib indicators for 2021, it is the Casablanca-Settat region which presents the largest number of bank branches (34% of the network), followed by that of RabatSalé-Kénitra (18%). And in third place, we find the Fez-Meknes region (11%).
The arrival of Takaful
The emergence of Takaful insurance companies made it possible to cover the stock of financing provided by the participatory banks. Now, customers who are reluctant to obtain financing due to a lack of Shariah-compliant coverage have their needs covered. That said, the various decisions taken by Morocco, whether regulatory, legal, sharia or strategic choices, can have positive or negative impacts on the financial performance of the Takaful business model.
As far as the positive impacts are concerned, two major points should be noted: the possibility of practicing for the different branches of activity within the framework of a single license, and the possibility of pooling human resources and distribution channels with the parent company. In terms of negative impacts, some decisions may have financial consequences for the Takaful business model, namely the product offering geared primarily towards participatory banks. The non-prescription of the commitments of the fund and the company vis-à-vis the participants is also a risk.
Equity capital market: Focus on the Sukuk market
The introduction of a Sukuk market is of paramount importance for the development of participatory finance in Morocco. “Indeed, thanks to the Sukuk market, participatory banks will be able to find instruments allowing them, at the same time, to diversify their sources of financing, to broaden the scope of their investments and to further optimize their cash management” , notes the report. As a reminder, the first issue of Sukuk certificates in Morocco took place in October 2018, which concerned an amount of 1 billion DH depreciable over a period of 5 years. At the same time, the Sukuk market allows Takaful insurers to respond to the double Shariah constraint of respecting the opinion of the Superior Council of Ulemas (CSO) and the matrimonial financial legitimacy in terms of the investment policy of contributions from takaful funds. Finally, the Sukuk market is likely to promote the development of the collective savings management industry, in accordance with the views of the CSO through UCITS vehicles, and to encourage small savers to invest in the markets. participatory financial institutions, which is likely to contribute to the promotion of financial inclusion.
