The Central Bank of Morocco has called on credit institutions to suspend, until further notice, any distribution of dividends for the fiscal year 2019, the financial institution said in a statement.
Given the context of crisis related to the Covid-19 pandemic, credit institutions are invited to strengthen their role in financing the economy, the bank said.
“It is important that credit institutions maintain sufficient capital to cope with the effects of the crisis and thus preserve their ability to provide financing in these exceptional circumstances,” the central bank recommended.
They are also called upon to strengthen their role in financing the economy, the statement continued, recalling the monetary and prudential policy measures adopted to facilitate access to bank credit for the benefit of both households and businesses.
The central bank will continue to “closely monitor the implications of the health crisis on the national economy and the financial system and would, if necessary, take the necessary measures to deal with it”.
HA/lb/abj/APA