Following a parliamentary process that lasted for about two years, the new provisions of the Law establishing the Statutes of Bank Al-Maghrib entered into force on July 15. Details
The draft Law 40-17 on the status of Bank Al-Maghrib was approved by the Government in August 2017 and has gone through all stages of the legislative process until its publication in the official bulletin dated July 15, 2019. The Wali Post's inalienability, independent vis-à-vis the government, strengthening the central bank's financial health, etc. Here is an overview of the most important changes introduced in the new statutes of Bank Al-Maghrib.
Independent of politics and government
The new statutes give Bank Al-Maghrib greater autonomy in monetary policy matters. From now on, the bank defines and implements monetary policy independently. It sets the goal of price stability as the main goal. A mission that it performs with complete transparency within the framework of the government's economic and financial policy.
Bank Al-Maghrib's independence was inaugurated by the special ban on receiving or requesting instructions from the government or any third party. In addition, the law hardens the incompatibility regime to eliminate all influence and explicitly prohibits Wali, the CEO, the rest of the board members and all bank staff from being in conflict situations. interests.
More extensive assignments
In addition to strengthening its powers in defining monetary policy, the Central Bank is given the task of setting monetary policy within the framework of the exchange rate regime and to act in advance by commenting on the Government's guidelines on this. area.
As part of its mission to maintain and manage the country's foreign exchange reserves, Bank Al-Maghrib has the power to mobilize them in support of the value of the dirham.
The central bank adapts monetary policy instruments to the specifics of the new players, the participating banks.
In addition, it is justified to request and receive all persons or bodies all information and statistical information necessary for its analysis work.
In addition to basic assignments (issuance of banknotes and coins, definition and implementation of monetary policy, management of foreign exchange reserves, monitoring of the banking system …), the bank is entrusted with new assignments. Bank Al-Maghrib has explicitly entrusted the task of contributing to the financial stability of the country. It is a member of the Systemic Risk Coordination and Supervision Committee established by the Banking Act, and can take all measures in this area, in particular the provision of emergency liquidity and the ability to take action in credit institutions in connection with the management of systemic risks and the resolution of banking crises
. also propose all other measures aimed at maintaining financial stability. The new provisions of the law also ensure efficiency in the decision-making process in dealing with crisis situations. The central bank is also set up as an authority to carry out the processing activity (sorting and recycling) of the associated money entrusted to private operators and also remains to control the entire chain.
Finally, the contribution to the implementation of the National Financial Integration Strategy (SNIF) is explicitly shared with Bank Al-Maghrib.
Eligibility in the service of the elections: a six-year period that can be renewed once
The provisions of the new law strengthen and strengthen the standards for good governance within Bank Al-Maghrib. Three committees have become statutory: an audit committee that is directly linked to the bank's board of directors in accordance with best practice observed in this area and two other committees, namely the Monetary and Financial Committee and the Financial Stability Committee, which have the role of assisting Wali in areas that are directly related to the bank's core mission.
As regards the terms of appointment of the six independent members of the Banking Council, three members are appointed on a proposal by Wali and three on the proposal of the unit responsible for funding for a period of six years. years that cannot be renewed. These members must not hold any office or hold positions of responsibility in public or private companies.
The powers of the Council are strengthened to include the possibility of: • deciding on any measures that can be implemented in exceptional or emergency situations; • fixing all other instruments for intervention in the money or foreign exchange market other than those prescribed by law
One of the most important news in the bank's statute is that the bank's Welsh post cannot be removed for a certain period of time is considered sufficient to implement the strategic objectives that are pursued in the implementation of the bank's mission (a six-year mandate that can be renewed once). In this regard, the Act provides for the hearing of Wali by specialized parliamentary committees, in accordance with the principle of accountability laid down in the Constitution. In the absence or obstruction, the Director-General has the power to replace Wali. He is also authorized to send current questions in the event of a vacancy.
The on-site control assignments become profitable
The new law provides that the bank can decide to increase its capital if necessary by introducing reserves and constituting as many reserve funds as needed. The state must pay the necessary amounts to fill any reduction affecting the capital of Bank Al-Maghrib. The new charter also establishes the obligation for those subject to control by Bank Al-Maghrib to pay a contribution to cover the costs arising from on-site inspection assignments. Finally, the bank now has a general privilege to repay its debts due to credit institutions.