Major bank launches internal audit over suspicious loans backed by weak collateral

Banking Giant Conducts Internal Audit Over Potentially Fraudulent Loans

Moroccan bank scrutinizes practices after uncovering loans backed by inadequate collateral.

A leading Moroccan banking group has initiated a comprehensive internal audit following the discovery of potentially fraudulent loan practices. Sources reveal that the investigation centers on loans granted to business owners and contractors utilizing weak real estate collateral, raising concerns about the financial integrity of these transactions.

Loans with Questionable Collateral:

The audit specifically targets loans where the pledged properties represented a mere quarter of the requested financing. In some instances, borrowers offered land deemed unsuitable for securing such substantial sums. This practice suggests a potential for financial misconduct and puts the bank's assets at risk.