"I therefore urge our banking sector to show greater commitment and to be more effectively involved in the country's development dynamic," said HM the King in a speech before the members of the two houses of parliament on the occasion of the opening of the first session of the fourth legislative year of the tenth legislature, noting that such effort should focus on financing investment projects and support for productive activities that create jobs and generate income.
"In this respect, and in addition to the financial support they give to large businesses and companies, I am calling on banks to play a greater social role in promoting development," the sovereign said, recalling that economic activity hinges mostly on the development of banking services.
"I ask the government and the Moroccan Central Bank to coordinate with the Professional Group of Moroccan Banks in order to develop a special program to provide financial support to young graduates and fund small self-employment projects," the sovereign underscored, adding that several segments of society still have a negative perception of the banking sector, as if banks were only interested in quick, guaranteed profit.
This is evidenced, for example, by the difficulty young entrepreneurs have in obtaining loans, and by the limited financial support provided to graduates and for the creation of small and medium sized enterprises, noted HM the King, saying that he is fully aware of the fact that it is difficult to change certain mind-sets within the banking sector.
The banks should play a greater social role in promoting development, especially by simplifying and facilitating access to loans, by being more open to self-employment projects and by financing the creation of small and medium sized enterprises, the monarch stressed, noting that a number of institutions have had a successful experience in financing projects developed by young people and facilitating their integration into social and professional life, given their positive impact on the young people concerned, their families and the community.
"This plan, whose various phases I will be monitoring with the government and the parties concerned, should be based on firstly: enabling as many young, qualified project holders as possible, from various social backgrounds, to obtain bank loans in order to launch their projects, and provide assistance to make the plan as successful as possible," HM the King insisted.
The sovereign went on to say that the second aspect will touch on giving financial support to export-oriented small and medium-sized enterprises, especially those trading with Africa, and enabling them to benefit from the value added offered by the national economy, while the third one will concern facilitating public access to banking services and to opportunities for professional and economic integration, particularly for people involved in the informal sector.
The monarch applauded the results achieved in this area over the past two decades, given that the number of citizens who opened a bank account has increased threefold, noting that banks are therefore expected to keep up efforts and invest in modern technology and innovative financial services to increase the number of Moroccans who have access to financing and banking services, thereby serving the interests of banks as well as those of the citizens in a balanced and equitable way and contributing to development.
The sovereign said that, however, this plan will not achieve its goals without the effective involvement of the citizens, who should shoulder their responsibilities and honour their loan terms and conditions.
HM the King underlined that the banking and financial sector is at the center of any development endeavour, noting that implementing projects and decisions, and ensuring follow-up to them, involves more that just the signing of contracts and agreements.
It is, above all, a moral contract involving reason as much as conscience, the sovereign said, stressing that this is a matter of shared responsibility for all the stakeholders concerned. Each party is duty-bound to fulfil its obligations and honour its commitments.
"Such a contract does not involve government institutions and elected officials alone. The private sector - especially financial institutions and the banking sector - is also concerned," HM the King said, adding that Morocco "has a vibrant, robust, professional banking sector which contributes to the resilience and development of our economy."
Morocco's financial system is subject to strict regulatory controls undertaken by independent and competent national institutions, the sovereign insisted, adding that this enhances trust in the banking sector and reinforces its credibility, both domestically and abroad, and, thanks to the progress it has achieved, the banking sector has been able to invest in a number of foreign countries, especially in Africa.
Financial regulatory and control institutions and mechanisms should monitor the various operations involved, and make sure there is a balanced, trust-based relationship between finance institutions and borrowers, the monarch noted, recalling the social responsibility of financial institutions, and the need for them to contribute to constructive initiatives, whether they concern social and humanitarian issues, the preservation of the environment or the promotion of sustainable development.