Central Bank of Morocco systemic risk committee approves 2024 financial stability report and notes non-performing loans rising to 8.8 percent

The Central Bank of Morocco published the outcomes of the twenty-first meeting of the Coordination and Systemic Risk Monitoring Committee (CCSRS), which approved the twelfth edition of the 2024 financial stability report and the 2022-2024 financial stability roadmap. The committee’s review of systemic risk mapping and financial system conditions found banks, financial market infrastructures and insurers broadly resilient and compliant with prudential requirements, while credit risks are rising and public-sector pension schemes remain structurally strained. Bank Al-Maghrib projections used in the assessment foresee GDP growth of 4.6% in 2025 and 4.4% in 2026, with inflation at 1.1% and 1.8%, and the current account deficit widening to 2.1% of GDP in 2025 before narrowing to 1.9% in 2026. Credit to the non-financial sector is expected to expand by about 6% on average in 2025-2026, and the non-performing loan ratio rose to 8.8% at end-April 2025 from 8.4% in 2024, with provisioning around 68%. Banking profitability increased 24% on a corporate basis and average Tier 1 and total capital ratios reached 13.5% and 16.2%, while insurance turnover reached MAD 58.8 billion and the solvency margin improved to 354.7%; UCITS net assets climbed to nearly MAD 792 billion as of 13 June 2025. The committee called for progressing the agreed “two-pole” pension reform to improve the long-term sustainability of public-sector schemes by establishing a balanced pricing structure and reducing uncovered commitments. It also welcomed progress in strengthening Morocco’s anti-money laundering and counter-terrorist financing framework and urged continued preparation for MENAFATF’s mutual evaluations scheduled to begin in 2026.