PARTICIPATORY FINANCE IN MOROCCO: THEORIC APPROACH

Résumé

Islamic banks are based on banking operations that are consistent with Muslim law (Shari'a), which prohibits interest or riba. In general, the Islamic bank prohibits working with interest. The loan is an important part of the conventional bank. Conventional banks therefore earn money on the basis of the difference between the lower interest rate paid on deposits and the higher interest rate charged to customers. However, the principle of Islamic banks is the prohibition of interest payments.

Currently, the instruments of Islamic banks are very limited in terms of insurance and taxation. This has resulted in participatory banking activities being more exposed to risk. This paper is structured around three main points: first, we will present the history of Islamic finance until its appearance in Morocco, second we will make an inventory of this industry between 2017 and 2020, and finally we will determine the issues and opportunities and challenges