Banking

While growth at some banking institutions slowed in 2012, due mainly to the pressures of exogenous slowdowns, the sector has remained largely resilient due to prudent regulation by the central bank. The country’s banks posted aggregate net income of €3.2bn in 2011, a 9% increase over €2.9bn in 2010, which translated to 4% growth in net income that year. The government is now grappling with rising fiscal and current account deficits, which became more severe in 2012 due to lower revenues from agriculture and tourism, the country’s main sources of income. To address tightening levels of liquidity, the central bank has cut reserve requirements and approved certificates of deposits. Meanwhile, new regulations set to come into effect will allow for the operation of fully fledged Islamic banks in the kingdom. This chapter includes interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Mohamed El Kettani, CEO, Attijariwafa Bank.