Since the early 1990s, Morocco has been undertaking a gradual liberalization of its financial system. The reforms have mainly focused on modernization of the monetary policy instruments and overhauling the financial system’s legal and regulatory framework (Kacemi and Zouhar, 2008). Key elements of the reform process were eliminating quantitative ceilings on credit, liberalizing interest rates, introducing market-based instruments of monetary policy and developing capital markets. As a consequence, the financial sector grew significantly in depth and breadth. The stock market started to develop ...
