The regulatory and institutional Framework of the governance of participating banks in Morocco

Abstract

Recently established in Morocco, participating banks have shown their resilience in the face of the recession caused by the Covid-19 pandemic, but this does not mean that they are immune to a potential crisis such as that of 2008. Hence the interest in clarifying the institutional rules of governance within the framework of this new system. This work proposes to clarify the law 103-12 relating to Bank-Al-Maghrib (BAM) circulars on the mechanisms of bank governance (board of directors, shareholder structure, audit committee, risk management committee), particularly that of participating banks. The governance mechanisms are derived from the legal laws governed by BAM which are unregulated by market issues.  The purpose of this research is therefore twofold: to clarify and confine the regulatory and institutional framework for credit institutions in Morocco and to infer good governance practices. This choice was made in the absence of a regulation system that legislates the governance system within participating banks.