TOPIC
a) Analyse the effects of the global recession on Morocco’s economy. b) Discuss what action Morocco has taken to reduce the adverse effects of the downturn c) In your view, does the downturn offer any positive opportunities for Morocco?
Table of contents
Introduction 4
1. The effects of the global recession on Morocco’s economy 5
1-1 The impact of the international financial crisis on Moroccan financial economy 5 1-2 - The Moroccan economy facing crisis 6
2. Actions taken to reduce the adverse effects of the downturn by Morocco 7
3. Does the downturn offer any positive opportunities for Morocco? 9
Conclusion 11
References 12
Introduction
The international financial crisis has largely been
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"Some foreign investors in the place could liquidate their position if they are affected by the crisis. But none of this has been reached, "said the director of Project Financing in BMCE Abdellatif Nasserdine.
The only impacts that the crisis could have on the place of Casablanca are psychological. The mistrust that has plagued the world in relation to real estate assets could be extended to Moroccan operators. Several reasons explain the remoteness of the international crisis in the Moroccan stock exchange
Moreover, the Moroccan banking system is composed of mainly Moroccan-owned banks (BMCE, BCP, Attijariwafa Bank) which control 70% of Morocco's banking market, and majority foreign-owned banks (SGMB, Credit Du Maroc, BMCI) that share 30% of the Moroccan banking market.
Recall that BNP Paribas owns 63% capital in BMCI, Societe Generale control with 51% of the SGMB and Credit Lyonnais has majority in Crédit du Maroc with 52% of capital. Yet according to the financial press, many French banks are affected by the crisis:
- The Societe Generale has not yet digested the loss of 5 billion of EURO attributed to its trader. Its shares have lost 50% of their value.
- The Crédit Agricole difficulties through its Calyon business bank wich will cut 500 jobs.
In Morocco, the economy is rather well behaved throughout the years 2008 and 2009, the greater control
The bank at some point received negative attention for issuing credit to arms companies, including companies like Boeing, Lockheed Martin, General Dynamics, Textron, Colbun, BAE Systems and EADS. Some companies within the bank’s portfolio have also been involved in environmental and labor rights violations scandals, for instance Wal-Mart and Total USA. This negative attention may lead to loss of investor confidence in the bank.
7. From the documents, what inferences can you make about the “disastrous effects of the business cycle” for each group below:
The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions
The outbreak and spread of the financial crisis of 2007-2008 have caused the most of countries into severe economic difficulties and also created an adverse impact on the global economy. The beginning of the financial crisis is defaults in the subprime mortgage market in the USA. Although the global economy seems to recover since 2009, the impacts of the crisis still affect many countries until now. This essay focuses on the background and impacts of financial crisis, and the learning from the movie The Big Short.
In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and
Now, many of these banking groups are owned by foreign investors, despite attempted safeguards. This ownership has provided investors leverage and influence over the actions of the government because the government owes an exorbitant amount to these banks (Daniel Lederman). The same argument can be made about the United States’ government. This influence can be seen across the board as many decisions now seem to favor only a select few, forgetting about the ramifications for the many.
The collapse of Lehman Brothers, a sprawling global bank, in September 2008 almost brought down the world’s financial system. Considered by many economists to have been the worst financial crisis since the Great depression of the 1930s. Economist Peter Morici coined the term the “The Great Recession” to describe the period. While the causes are still being debated, many ramifications are clear and include the failure of major corporations, large declines in asset values (some estimates put the drop in the trillions of dollars range), substantial government intervention across the globe, and a significant decline in economic activity. Both regulatory and market based solutions have been proposed or executed to attempt to combat the causes and effects of the crisis.
Recession is a term that looms over any society at some point or another but what does recession mean for the economy, in short it is an economic decline. This essay will examine the meaning of recession and will discuss the fiscal and monetary policies that are used to pull economies out of recessions. The great Recession of 2008 will shed light on how these policies were successful at restoring economic growth and reducing unemployment.
Recent studies have investigated the impact of the 2007-2009 financial crises on banks’ capital. Berger and Bouwman (2011) emphasised the importance of capital during financial crisis. Their empirical study concludes that banks with solid capital base have some benefits during the crisis than those that are poorly capitalised. Well capitalised banks are more able to withstand the shocks due to liquidity squeeze, and therefore had higher chances of surviving the crisis period. Other benefits accrued to well capitalised banks include increase in their market share and profitability, as customers withdrew their funds from less capitalised to a well-capitalised banks. This conclusion was also reinforced by a recent empirical study conducted Olivier de Bandt et al (2014) on a sample of large French banks over a period of 1993 – 2012. Similarly, Gambacorta and Marques-Ibanez (2011) demonstrate the existence of structural changes during the period of financial crisis. They conclude that banks with weaker core capital positions, greater dependence on market funding and on non-interest sources of income restricted the loan supply more strongly during the crisis period. Using a multi-country panel of banks, Demirgüç-Kunt, Detragiache and Merrouche (2010) find among others results, that during
Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have
According to the specialists, there are many reasons for this global financial crisis. We try to focus some prime reasons behind this
Due to the consequences of the recent financial crisis, the company has observed a significant decline in the investment activities of its clients all over the world. These consequences brought negative impacts to its financial performance.
Key sectors of the economy include agriculture, tourism, phosphates, textiles, apparel, and subcomponents. The gross saving in Morocco decline from year 1990 until 1995 and reached 21.08% at the year end of 1995. Next, the figure 1 given between year 1996 – 2009 appear to only stable movement and roughly at 28.61% gross saving.
The UAE is one of the riches nations in the world as measure by per capita GNP. The economy is primarily based on the oil
Risk related to events even before the War on Terror began, the Sept. 11, attacks dealt a harsh blow to America financial standing (DePietro, 2017).sintressing the future role in which finance leadership is evolving. Equally alarming this crisis that influences an organization's decision-making, based on significant external and uncontrollable factors. Some of these aspects that remained obtainable in this discussed involve the economic factors, legal, political, and social conditions technological changes. The change of Interest rates in