2009年-世界发展银行全球_The_Rise_Fall_and_Recovery_of_the_Microfinance_Sector_in_Morocco_4页_695kb

The Rise, Fall, and Recovery of the Microfinance Sector in Morocco

Core Content

The microfinance sector in Morocco has experienced both remarkable growth and a subsequent crisis, followed by a recovery phase. Morocco is a key player in the microcredit arena, with a significant number of clients and strong institutional performance. However, the sector faced challenges due to unsustainable growth, leading to increased loan delinquency and financial instability.

Main Points and Key Information

Growth and Success (2003–2007)

• Morocco is a microcredit leader in the Arab world, with 40% of client outreach.
• As of December 2008, there were 12 licensed MFIs, serving nearly 1 million clients with combined assets of 5.7 billion dirham (US$705 million).
• The four largest MFIs accounted for 90% of client outreach.
• The sector experienced extraordinary growth, with loan portfolios multiplying 11 times and client outreach increasing fourfold between 2003 and 2007.
• Leading MFIs such as Zakoura and Al-Amana were recognized internationally for their performance.
• The growth was supported by the Moroccan Government through the Microfinance Law of 1999 and financial assistance from Le Fonds Hassan II.
• Commercial banks played a crucial role, creating two of the largest MFIs and funding 85% of the sector’s assets in 2008.

The Crisis (2007–2009)

• The crisis began in 2007 with signs of stress, including rising delinquency and multiple lending.
• Nonperforming loans (NPLs) increased from 0.42% in 2003 to 1.9% in 2007, and further to 5% in December 2008 and 10% in June 2009.
• The global financial crisis did not directly cause the crisis; rather, it was due to internal issues such as:
  • Overstretched capacity
  • Lenient credit policies
  • Outdated management information systems (MIS)
  • Weak internal controls and governance
• Changes in credit methodology, such as individual lending, larger loan sizes, and monthly installments, contributed to 40% of the delinquency.
• Multiple lending was widespread, with 40% of beneficiaries having more than one loan, especially in urban areas.
• Profitability declined sharply in 2008, with some MFIs reporting a PAR 30 of over 30% by May 2009.

Recovery Efforts

• The government and MFIs responded quickly, including:
  • Merging Zakoura with Fondation des Banques Populaires to stabilize the sector.
  • Slowing down growth and reducing balance sheet size, resulting in a 1.2% decline in 2008 and a 7% decline in the first six months of 2009.
  • Improving cash positions, with over 15% of assets in cash by the end of 2008.
• MFIs implemented recovery strategies such as:
  • Tightening credit processes
  • Establishing dedicated recovery teams
  • Taking judicial action against delinquent borrowers
  • Exchanging credit information weekly to control cross-lending
• The share of clients with multiple loans dropped from 39% in October 2008 to 29% in September 2009.
• Small and medium MFIs are planning to merge or share back office systems to cut costs and improve efficiency.

Government's Response

• The government, in collaboration with BAM and FNAM, introduced a consolidation plan.
• Priority 1: Strengthening MFIs through governance reforms and transparency measures.
• Priority 2: Controlling multiple lending by integrating the four largest MFIs into a credit bureau.
• Priority 3: Securing liquidity by encouraging linkages with banks.
• Priority 4: Improving the regulatory framework through a survey funded by the Millennium Challenge Corporation.
• The survey results were expected in Q2 2010 and would be discussed with the sector in the second half of the year.

Conclusion

The Moroccan microfinance sector, once a global success story, faced a severe crisis due to unsustainable growth. However, through swift government intervention, institutional reforms, and improved credit management, the sector is on the path to recovery. The focus on governance, transparency, and liquidity is expected to lay the foundation for a more resilient and sustainable microfinance industry in the future.