The Moroccan banking sector continued to show robust fundamentals in 2023, according to the Systemic Risk Coordination and Supervision Committee (CCSRS).
The statement by Bank Al-Maghrib (BAM) issued after the 19th meeting, the banking sector’s profitability rebounded significantly in 2023.
The aggregate earnings of the bank rose by 20.4 per cent, after contracting by 13 per cent in 2022. This recovery is mainly attributable to the positive performance of market operations.
In terms of solvency, Moroccan banks have solid ratios. On a parent-company basis, the average solvency ratio is 15.5 per cent,
while the average Tier 1 capital ratio is 12.9 per cent, well above the regulatory minimums of 12 per cent and 9 per cent respectively. On a consolidated basis, these ratios are 13.5 per cent and 11.6 per cent.
The Macro-stress solvency tests confirm the sector’s resilience in the face of scenarios simulating a deterioration in macroeconomic
conditions. The short-term liquidity ratio also remains at a comfortable level, above the regulatory threshold of 100 per cent.
Financial market infrastructures continue to demonstrate strong resilience, both financially and operationally, and present a low
level of risk to financial stability.
During the meeting, the Committee approved the Financial Stability Report for 2023 and reviewed progress on the Financial Stability
Roadmap for 2022-2024. It also reviewed the conclusions of the work of its monthly sub-committee and the results of the systemic risk assessment, noting that monitoring indicators show continued strength and resilience of the Moroccan financial sector.
The CCSRS welcomed the efforts to complete the compliance of the national anti-money laundering and combating the financing of terrorism framework with the FATF recommendations, as confirmed by MENAFATF at its plenary meeting in Manama.
MN/ac/fss/GIK/APA