MA-Second Capital Market Development and SME Finance DPL

The program development objectives of this DPL are to: Pillar A. Improve access to finance for small and young enterprises PillarB. Strengthen capital markets by improving the institutional framework and broadening the range of instruments Pillar C. Improve the financial sustainability of the Caisse Marocaine des Retraites Pillar D. Strengthen oversight of the banking sector. This is the second in a series of two development policy loans (DPLs). The proposed operation supports the long-standing commitment of Moroccan authorities to develop a more inclusive and diversified financial sector. The series supports comprehensive reforms to enable new financing solutions for economic and social infrastructure and small enterprises. In this process, the financial sector takes on more risk, so the program features policies that balance risk-taking with stronger oversight by the regulators. Finally, the reform of the largest pension fund in Morocco ensures that it remains a large local investor in existing and new asset classes. The following institutions in Morocco are involved in the operation: Ministry of Economy and Finance, Bank Al-Maghrib (Central Bank), L’Autorité Marocaine du Marché des Capitaux (capital market authority), and the Autorité de Contrôle des Assurances et de la Prévoyance Sociale (independent insurance and pension supervisor). This ISR covers results indicators to March 30 2018 (up to project closing). They were provided to the WBG by the Ministry of Economy and Finance on May 31, 2018. Results indicator for final evaluation are tracked to end of calendar year 2018.