Islamic finance expert Abdeslam Ballaji
Rabat - Redouane Mabchour
President of the Moroccan Association of Islamic Economic Studies, Abdeslam Ballaji has told Arab Today that the government's bill of credit institutions will be presented for debate in parliament after the cabinet has approved the draft.
Ballaji said that the Islamic finance bill was delayed because "traditional banks saw Islamic institutions as rivals," adding that the financial sector has changed significantly over the last few years.
"A large number of investors in the Gulf have witnessed financial stability in Morocco. We also have Faisal Islamic Bank, which is ready to open its branches in Morocco.
The Islamic finance expert that Islamic bank would not provide an obstacle to traditional banks, but would benefit the Moroccan economy. "The model is tried and tested. Look at the success of Islamic banks in Arab countries like Egypt, Saudi Arabia, Kuwait, Malaysia, and even some European countries like Britain.
"A well-run Islamic banking system can become a major economic force," he added.
Ballaji said it was important for traditional banks to give their clientèle the option of Islamic banking.
"Islamic banks would be running on a risk-taking strategy with the possibility of profit loss. This process is not virtual, its real, while the traditional bank are likely to be ahead of the game time and time again."
Ballaji said that Morocco needs a strong Islamic banking system which can come to the aid of ordinary citizens in the event of a financial crisis.
"There would be a common fund between these banks to overcome any crisis resulting from the withdrawal of residents' clients.
"Under such a system, the guarantee for the consumer liquidity is real, and would be supervised by a national committee," he explained.