Regulators of the financial sector in Morocco are particularly sensitive to climate risk, said Tuesday in Rabat, the Wali of Bank Al-Maghrib (BAM) and President of the Moroccan Committee for Coordination and Surveillance of Systemic Risks (CCSRS), Abdellatif Jouahri. .
“Financial sector regulators, as part of global efforts to combat climate risks, have launched numerous initiatives aimed at integrating the climate dimension into strategies, decision-making processes and financial regulatory frameworks,” said Mr. Jouahri, during the 4th edition of the High Level Regional Symposium on Financial Stability, which is being held on November 26 and 27.
According to him, the manifestations of climate change are clear and recurrent in the case of Morocco, notably with years of drought, acute water stress alongside recurring floods and floods.
In this regard, BAM published, in March 2021, a directive inviting Moroccan banks to fully integrate climate risk into their governance and risk management systems, and into their investment and financing strategies, recalled Mr. Jouahri.
And to add that Bank Al Maghrib also carried out, in partnership with the World Bank, a study on climate risks in the banking sector, the first of its kind in the region and the results of which were published in April 2024.
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For its part, the Moroccan Capital Market Authority (AMMC) has published a series of guides on sustainable financing instruments and socially responsible investment, noted Mr. Jouahri, noting that the Authority has also issued in 2019 a circular making the publication of an annual environmental, social and governance (ESG) report mandatory for all issuers on the capital market.
Likewise, the Insurance and Social Security Control Authority (ACAPS) has issued an instruction on the management of financial risks linked to climate change and the environment for insurance and reinsurance companies, a- he continued. Furthermore, the Wali of BAM stressed that in addition to extreme climatic phenomena, the world has witnessed a series of shocks linked to the multiplication of conflicts, the recurrence and resurgence of inflationary pressures.
Geoeconomic fragmentation, the rise of protectionism, digitalization and the development of artificial intelligence, as well as demographic dynamics, are also profound changes which continue to reconfigure the global economic, social and financial scene, he said. he observes.
Noting that this context results in high levels of uncertainty and the emergence of new complex risks that are difficult to prevent and manage, Mr. Jouahri stressed that “decision-making, both private and public, becomes in such a context a real challenge.” “Mobilising the financial resources needed to achieve climate change mitigation and adaptation goals is also a huge challenge,” he said.
Addressing cryptoassets and digital currencies, Mr. Jouahri stressed that the Moroccan authorities, taking into account developments in international regulation, have favored a regulatory approach aimed at ensuring adequate protection of users and investors while preserving opportunities to benefit from benefit from these innovations.
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With this in mind, BAM has prepared a bill governing cryptoassets which is currently in the adoption process, he indicated. “With regard to central bank digital currencies, we are seeking to determine to what extent this new form of money could contribute to the achievement of certain public policy objectives, particularly in terms of financial inclusion,” he added.
This 4th edition aims to highlight the complex challenges and risks weighing on financial stability, particularly since 2020, while strengthening the means of cooperation in the area.
Placed under the theme “Financial Stability in Africa in the face of geoeconomic uncertainties and emerging risks”, this symposium is marked by panels, sessions and debates aimed at sharing expertise, experiences and information relating to financial stability challenges and to further strengthen cooperation in the areas of financial stability and macroprudential supervision.
(IDM with MAP)
