the ecosystem is progressing with sure steps!

Participatory finance, introduced in Morocco since 2017, continued its development during 2022, to the delight of customers looking for new methods of financing, but also investment.

Relying on a continuously expanding banking network and a more enriched offer, this ecosystem posted strong double-digit growth throughout the 2022 financial year, proving that it has the necessary potential to position itself as a real alternative. to conventional finance.

A dynamic which also finds its origin in the enthusiasm of Moroccans for the various participatory products such as “Mourabaha real estate” and “Mourabaha Automobile”.

Supporting figures, recent monetary statistics from Bank Al-Maghrib (BAM) reveal that financing granted by participating banks increased, year-on-year, by 23.8% to around 22.92 billion dirhams (MMDH) during the first ten months of this year.

These financings concern, among others, real estate (18.93 billion dirhams), consumption (1.2 billion dirhams), equipment (2.47 billion dirhams) and cash (131 million dirhams).

At the same time, the commitments of the participating banks amounted to nearly 8.15 billion dirhams with the banks, mainly in the form of refinancing through the product of “Wakala bil Istithmar” and sight deposits received from the parent banks.

Checking accounts and current accounts, meanwhile, climbed by 22.9% to more than 6.17 billion dirhams, while investment deposits stood at nearly 2.28 billion dirhams.

Starting Takaful: a major step forward

If this participatory finance has continued to grow, particularly in terms of funding granted over the months of 2022, it has also taken a giant step in the insurance aspect, with the launch of “Takaful”.

A launch which comes after the publication in October 2021, by the Insurance and Social Welfare Supervisory Authority (ACAPS), of a circular on the application of the provisions of the Insurance Code relating to Takaful insurance.

Thus, approvals have been granted to participatory banks to present Takaful insurance products, which is a major step forward for the ecosystem of participatory finance.

In addition, the National Accounting Council (CNC) has published Opinion No. 17 relating to the amendment of the insurance chart of accounts following the introduction of Takaful insurance, issued by the Minister of Economy and of Finance, Nadia Fettah, in her capacity as Chair of the Board.

This type of insurance, whose operations are carried out in accordance with the opinions of the Superior Council of Ulemas (CSO), aims to ensure coverage of the risks provided for in the Takaful insurance contract or even the Takaful investment, through a Takaful Insurance Fund.

It is a Fund, endowed with legal personality and financial autonomy, created and managed by a Takaful insurance company, for the benefit of the participants for whom it is considered to be the agent, in return for remuneration .

The Takaful Insurance Fund is made up of several accounts funded by participants’ contributions as well as profits made elsewhere by these accounts. These resources are used to pay agency fees, acquisition fees and direct costs related to the operation of the Fund, as well as indemnities due under Takaful insurance contracts.

Any surplus generated is distributed among the participants in accordance with the management regulations. However, in the event of inability to cover the Fund’s commitments, the insurance company is required to make up the shortfall through Takaful advances, which will then be recovered from the Fund’s future surpluses.

Regarding the approvals granted by ACAPS, at the beginning of 2022, they allow approved companies to start the Takaful insurance activity, following the assent issued by the CSO, relating to management regulations, Takaful insurance contracts and general redemption and advance regulations.

The Takaful insurance operations, subject of the approvals, relate to Life and death, insurance operations against the risk of bodily accidents, against fire and natural elements, against glass breakage, against water damage and Takaful investment.

The operationalization of Takaful insurance makes it possible to promote and develop several products of participatory banks through new insurance offers, as well as to meet the needs of a segment of the population in terms of insurance coverage.

The start of Takaful insurance will thus contribute to the promotion of financial inclusion by meeting the needs of customers who do not want to opt for conventional insurance, thus promoting the development of the financial sector.

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