Morocco’s central bank Bank Al-Maghrib (BAM) said the global economy can be gradually recovered, in particular as a result of stimulus measures taken by the government and central banks from 2020 onwards.
This recovery, however, remained fragile and tainted by uncertainties related to the circumstances surrounding COVID-19, as well as the escalation of geopolitical tensions linked to the outbreak of the Russian-Ukrainian conflict in early 2022, according to BAM’s latest annual report.
In Morocco, the economy noted a rebound as a result of progress in immunization and the continuation of fiscal and monetary stimulus implemented since the outbreak of the health crisis, as well as the good results of the agricultural season.
The economy grew by 7.9%, supported by a 17.8% increase in agricultural value added and a 6.8% increase in non-agricultural GDP contribution.
In this context, the banking sector proved and continued to show resilience and was able to continue providing financing to economic agents thanks to public support measures, notably in the form of COVID loans guaranteed by the government.
The growth of bank credit to the non-financial sector was 3%, driven by the financing of companies’ cash flow needs of businesses.
The increase in past due receivables was slight to 6.7% after an increase of 14% a year earlier, giving a risk rate of 8.5%, up 0.3% points.
The solvency indicators of the banks have strengthened, with average solvency and capital ratios of 15.8% and 12%, respectively, added BAM.
The banks’ cumulative net income recovered, recording a rebound of 76.4% on a parent company basis and 78% on a consolidated basis.
Evolution of the financial network
The banking network has been shrinking as the number of banking services available across digital channels has been rising.
This trend, which began a few years ago, has intensified since the pandemic outbreak.
The number of banking agencies has moved from 117 units to 6.056 by the end of 2021.
This change reflects a decrease of 140 offices for traditional banks and an increase of 23 offices for participatory banks, added BAM in its annual report.
The number of inhabitants per, which is how the banking density is calculated, reached 5.900, up compared to 5.800 recorded a year earlier.
The number of agencies per 10,000 residents was set at 1,7, added BAM’s report.
Similarly, the number of ATMs increased by 2,7%, equivalent to 206 units, after an increase of 1,6% previously to reach 7.940 units, according to the same source.
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