Morocco’s central bank Bank Al-Maghrib (BAM) said the banking industry has proven resilient and has given funding to businesses, particularly through public assistance programs like government-backed loans.
Bank credit growth in the non-financial sector increased by 3% as a result of financing companies’ liquidity needs, said BAM in recent press release.
The ratio of non-performing loans reached 8.5% at the end of 2021, after a minor decline in their growth rate.
The banks’ cumulative net revenue reached 76.4%, driven by a 15.8% increase in the average solvency ratio from the regulation minimum of 12%, added BAM.
The participatory banking sub-sector has also shown resilience in terms of activity, results, and asset quality. This ecosystem is expected to gain further momentum with the launch of Takaful insurance products.
Additionally, Morocco’s central bank said that it has had to lift some of the temporary prudential support measures it had introduced during the outbreak of the COVID-19 pandemic.
Regarding the distribution of dividends, BAM has urged the banks to act with due caution and to request prior approval ahead of any distribution operation, further specified the same source.
Morocco’s central bank also works on responding to the target areas of intervention due to the health crisis, especially those related to customer protection, digitalization, and climate change.
Regarding financial integrity, Bank Al-Maghrib has mobilized within the national coordination bodies to speed up the implementation of Morocco’s action plan to comply with all the requirements of the Financial Action Task Force (FATF).
A number of efforts have been put into place to increase information accessibility and strengthen the interaction between banks and their customers.
Bank Al-Maghrib has also stepped up its public outreach efforts by publishing guides and educational capsules on banking mobility, issuing guarantee releases, and processing credit institution clients’ claims, concluded Morocco’s central bank in the press release.
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