Central Bank of Morocco publishes 2024 banking supervision report outlining new climate risk directives and payment services reforms

The Central Bank of Morocco released the 21st edition of its annual banking supervision report for 2024, covering its regulatory and supervisory work and the performance of credit institutions and similar bodies. The report notes that the policy rate was cut twice in June and December by a cumulative 50 basis points to 2.50 percent, while bank credit grew 4.6 percent and customer deposits 9.2 percent; non-performing loans stood at 8.4 percent on a corporate basis and 9 percent on a consolidated basis. Conventional banks’ aggregate earnings increased 24.1 percent and participatory banks reached breakeven, alongside average solvency and Tier 1 capital ratios of 16.2 percent and 13.5 percent, both above regulatory minima of 12 percent and 9 percent; the average Liquidity Coverage Ratio remained comfortable. Supervisory priorities included emerging risks, with two new directives setting requirements for climate risk management and work on a climate finance strategy targeting 2030, as well as a major reform of the regulatory framework for payment institutions and services to support digital payments, licensing of three crowdfunding companies (including one focused on donation-based financing), and strengthened cyber-risk oversight with coordination with the General Directorate of Information Systems Security. The report also points to completed reforms to strengthen bank crisis management tools and the emergency liquidity mechanism, and notes the finalization of draft laws on a secondary market for non-performing loans and on crypto-assets, alongside enhanced consumer-protection supervision and measures to improve accessibility for persons with disabilities and to reduce digital banking scam risks.