PARTICIPATORY BANKING REGULATION IN MOROCCO: A COMPARATIVE INSTITUTIONAL AND LEGAL ANALYSIS WITH TÜRKIYE AND MALAYSIA
DOI:
https://doi.org/10.33102/hc9bx269Keywords:
Participatory banking, Islamic finance, Comparative law, Morocco, Shariah governance | e-ISSN: 2948-460X | https://ibaf.usim.edu.myAbstract
This paper examines the legal regulation of participatory banking through a comparative analysis of the regulatory frameworks adopted in Morocco, Türkiye, and Malaysia. However, the Moroccan regulatory framework raises an unresolved question as to whether its centralized institutional and Shariah governance architecture is sufficiently equipped to support financial innovation, capital market development, and productive investment while maintaining legal certainty and institutional legitimacy. It aims to identify the principal legal, institutional, and governance mechanisms that shape participatory banking systems and to evaluate their respective contributions to financial stability, regulatory effectiveness, and sustainable economic development. The study employs a comparative legal methodology based on the analysis of legislation, regulatory policies, institutional governance models, and supervisory practices governing participatory banking in the three jurisdictions. The findings demonstrate that Morocco has established a coherent and centralized regulatory framework through Law No. 103.12, supported by the supervisory authority of Bank Al- Maghrib and the centralized Shariah governance exercised by the Higher Council of Ulema. While this framework provides legal certainty and institutional legitimacy, comparative analysis reveals that its contribution to financial innovation, capital market development, and productive investment remains relatively limited. In contrast, Türkiye illustrates the advantages of integrating participation banking within a unified banking system, whereas Malaysia demonstrates the effectiveness of a comprehensive Islamic financial ecosystem combining banking regulation, capital markets, Sukuk, Takaful, financial technology, and centralized Shariah governance. Based on these comparative findings, the paper proposes a Hybrid Moroccan Regulatory Model that preserves the institutional strengths of the existing Moroccan framework while incorporating selected regulatory innovations inspired by the Turkish and Malaysian experiences. Rather than advocating regulatory transplantation, the proposed model promotes gradual institutional evolution through enhanced governance coordination, financial innovation, capital market integration, and international regulatory cooperation. The study contributes to comparative financial law by demonstrating that successful participatory banking regulation depends on coherent institutional architecture adapted to national constitutional and economic contexts while benefiting from international best practices.
Downloads
References
Abedifar, P., Ebrahim, M. S., Molyneux, P., & Tarazi, A. (2015). Islamic banking and finance: Recent empirical literature and directions for future research. Journal of Economic Surveys, 29(4), 637–670. https://doi.org/10.1111/joes.12113
Ahmame, M. (2023). Les banques participatives au Maroc : enjeux et perspective d’évolution ? Revue Française d’Économie et de Gestion 4(8). https://www.revuefreg.fr/index.php/home/article/view/1230
Aysan, A. F., Disli, M., & Ozturk, H. (2016). Is small the new big? Islamic banking for SMEs in Turkey. Economic Modelling, 54, 187– 194. https://doi.org/10.1016/j.econmod.2015.12.031
Bank Al-Maghrib. (2025). Rapport annuel sur la supervision bancaire: Exercice 2024. Bank AlMaghrib. https://www.bkam.ma/fr/content/download/828688/9035256/Rapport %20DSB%202024.pdf
Bank Negara Malaysia. (2019). Shariah governance policy document. Bank Negara Malaysia.
Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking & Finance, 37(2), 433– 447. https://doi.org/10.1016/j.jbankfin.2012.09.016
Chapra, M. U. (2000). The future of economics: An Islamic perspective. The Islamic Foundation.
Chetioui, Y., Lebdaoui, H., Belouali, Z., & Sarea, A. (2024). Antecedents of Murabaha home financing among Muslim household – An integrated framework. International Journal of Social Economics, 51(12), 1646–1661. https://doi.org/10.1108/IJSE-10-2022-0680
Dusuki, A. W. (Ed.). (2012). Islamic financial system: Principles and operations (2nd ed.). International Shari’ah Research Academy for Islamic Finance (ISRA).
Fakhri, L., Lazrak, Y., & Trid, S. (2023). Islamic banks in Morocco: Facts and challenges. MALIA: Journal of Islamic Banking and Finance, 7(2), 83– 98. https://doi.org/10.21043/malia.v7i2.21928
Islamic Financial Services Board. (2023). Islamic financial services industry stability report 2023. Islamic Financial Services Board.
Kingdom of Morocco. (2014). Law No. 103.12 relating to credit institutions and similar bodies. Official Gazette of the Kingdom of Morocco.
Lakmiti, L. N., & Malainine, C. (2021). Le cadre réglementaire et institutionnel de la gouvernance des banques participatives au Maroc. International Journal of Accounting, Finance, Auditing, Management and Economics, 2(2), 410– 426. https://doi.org/10.5281/zenodo.4641521
Malaysia. (2009). Central Bank of Malaysia Act 2009 (Act 701). Government of Malaysia.
Malaysia. (2013). Islamic Financial Services Act 2013 (Act 759). Government of Malaysia.
Participation Banks Association of Türkiye. (2024). Participation banking sector report 2024. Participation Banks Association of Türkiye.
Republic of Türkiye. (2005). Banking Law No. 5411. Official Gazette of the Republic of Türkiye.
Trakic, A. (2013). Malaysian two-tier Shari’ah governance framework for Islamic financial institutions: What does the Malaysian model offer? Journal of International Banking Law and Regulation, 28(2), 89–95.
Usmani, M. T. (2002). An introduction to Islamic finance. Kluwer Law International.
Zweigert, K., & Kötz, H. (1998). An introduction to comparative law (3rd ed., T. Weir, Trans.). Clarendon Press.
