Abd al -Latif al -Jawahiri, the governor of Bank Al -Maghrib, said, “Although the participatory banking sector represents only 2 percent of the total assets of the banking sector, the Bank Al -Maghrib, as the supervisory authority on the banking sector, has been involved, since 2015, with the rest of the actors, in establishing an appropriate environment for participatory finances from it for its importance and in order to accelerate the completion of the download of its pillars in order to respond to the aspirations of society Moroccan.
The Supreme Scientific Council won the Note of Al -Jawahiri for “comprehensive mobilization and the total involvement of all those involved in the national system on the relevant efforts that resulted in establishing an institutional, legal, organizational and cheap framework for participatory finance according to a ruler road map.” He said: “Thanks to this mobilization, here we are today in front of the system of the phenomenon of landmarks, we seek to complete it with the dignity and investment that requires this from the experiences of the leading countries that have preceded us.”
The Central Bank, who was speaking Thursday, during the opening of the 23rd Forum for Islamic Financial Stability held in Rabat to address the issue of “promoting stability … strengthening the durability of the Islamic financial sector and addressing structural weakness Clearly with many challenges, regardless of their causes, whether political, climate, or purely financial, or take the form of natural disasters or parties.
The Moroccan financial official pointed out that the “Yusuf Council” “has always been monitoring cases in order to propose and adopt procedures and update criteria or issue new standards, thanks to the commitment of its members; and therefore we must continue in this direction.”
“Improvity of the Islamic Financial Industry”
In his long speech, Al -Jawahiri highlighted the importance of the experience of the Kingdom of Morocco, “which adopted the centrality of the fatwa to fortify the Islamic financial industry from the dangers of reputation and conflicts of opinions; by referring to the Supreme Scientific Council as a body that specializes alone and not others to issue fatwas of a general nature. This may be translated on the ground by marking the organizations related to Islamic finance and stereotypes of products to achieve legitimate conformity.”
The Central Bank added: “Given the fact that the acquisitions of the gains differ according to the privacy of each country in dealing with this Islamic financial industry, given its principles to face structural challenges, the Islamic Financial Services Council adopts standards based on“ Based Principle ”principles, which each of the supervisory authorities of each country apply with regard to the privacy of each activity, its size, nature and degree of complexity.
The same spokesman increased his evaluation of an effective role for the aforementioned council by “unifying standards and enhancing cooperation and consultation between supervisory authorities on the financial sector, which makes this cooperation a basic matter and a power point for the efficiency and good use of the mechanisms.”
The Governor of Bank Al -Maghrib took the opportunity to “appreciate the work of this organization and acknowledge the concrete achievements that it has achieved since its inception in 2003, as it seeks to devote it and filter it within the framework of reviewing its organizational framework to fit its new roles with the current challenges by strengthening the capabilities of the institutions under which they are within the framework and support technically, and the best evidence for this is the accompaniment that it has provided to the Bank of Morocco throughout the past years.”
Four challenges
In addition to “the issue of legal conformity as a preliminary challenge”, it is, according to the spokesman, “an essential starting point in the business model, it is not only a matter of strengthening the durability of the financial sector; it is also a necessity for the continuity of Islamic finance in existence and a crucial point to achieve the goal of unifying practices”, Al -Jawahiri stressed before the attendees, considering that “the second structural challenge is” the management of liquidity “; The challenges associated with their rarity, the ability to circulate, or the maturity of the secondary market, and the weakening of transactions across the border.
And “their awareness of these challenges”, the supervisory authorities take seriously the constraints associated with the requirements of liquidity. To this end, they have developed transitional rulings to keep pace with banks through the controls and rules of liquidity; However, with the passage of time, matters have increased complicated in this regard, given the tightening of the conditions of monetary policies and high inflation in some countries; This calls us to work to provide more liquidity tools (especially the sukuk), ”the governor of the Moroccan Central Bank mentioned.
“Islamic green financing”
In the same context, “sustainable financing” is highlighted as a third challenge, “it can contribute to the consolidation of the identity and durability of Islamic financing, as the principles on which Islamic financing are inspired. Returning to the year 2014, which is a turning point in terms of global mobilization for the sustainable development goals, as well as mitigating the effects of the climate, we note that in relation to financing the sustainable development goals, the financing gap is about 2.5 trillion US dollars to reduce these climatic effects. Hence, Islamic financing will contribute to reducing the funding gap associated with sustainability. ”
He stressed that “Islamic financing can benefit from global trends in green Islamic financing. It can also bring us the link between green and Islamic financing the best global practices that will achieve the development of Islamic green financing.”
As for the fourth challenge, it is “the risks associated with digitization”; In addition to his explanation: “With all the technical innovations that we see in the financial market, we can confirm that Islamic financing must enhance the use of financial technological solutions in order to enhance its offer, although the numbers generally indicate the increasing digitization of Islamic financing by 44 percent as stated in the financial stability report of the Financial Services Council of 2025.
This requires, according to the first financial official, “keeping pace with supervision and a greater degree of oversight alertness to confront and mitigate new and emerging risks; it is necessary to enhance regulatory supervision, enhance the governance system, and encourage pre -control control, including identifying and monitoring the risks of Islamic financial institutions,” in its expression.
The Governor of Bank Al -Maghrib promised the forum “a vital space to discuss the promising horizons involved in the Islamic financial sector, especially in light of the accelerated growth witnessed, which reached 14.9 percent during the year 2024, according to the latest report of the Islamic Financial Services Council.”
Its convening was also placed in the “context of a articulated phase characterized by the accelerated technological development, digital transformation, and the increasing challenges of sustainability, in addition to the structural and circumstantial challenges facing the sector, especially mentioning” the uncertainty “in which the global situation is named as a result of the instability of the conditions in the Middle East and the repercussions of the war between Israel and Iran, the Russian -Ukrainian war, and commercial wars.
He added that “the Middle East region has an important share of Islamic financial assets circulating at the global level; therefore, every negative or positive development in this region will undoubtedly have a direct reflection on the Islamic Financial Industry Sector.”
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