Morocco's Coordination and Systemic Risk Monitoring Committee met at Bank Al-Maghrib in Rabat for its 21st meeting, approved the 12th edition of the 2024 Financial Stability Report and reviewed the 2022-2024 financial stability roadmap. Its systemic risk mapping and wider assessment of the financial system pointed to continued resilience across banks, financial market infrastructures and insurers, alongside a deterioration in some credit risk indicators and ongoing structural pressures in public-sector pension schemes. The committee’s macro baseline assumes Morocco’s growth accelerates from 3.8% in 2024 to 4.6% in 2025 and 4.4% in 2026, with inflation rising moderately from 0.9% in 2024 to 1.1% in 2025 and 1.8% in 2026. It expects the current account deficit to widen from 1.2% of GDP in 2024 to 2.1% in 2025 before narrowing to 1.9% in 2026, with official reserves projected to cover more than five months of imports. Bank credit to the non-financial sector is projected to grow by an average 6% in 2025-2026, while the non-performing loan ratio increased to 8.8% at end-April 2025 from 8.4% in 2024, with provisioning around 68%. Banks’ net income rose 24% (corporate basis), average Tier 1 and total capital ratios reached 13.5% and 16.2% (12.3% and 14.1% on a consolidated basis in 2024), and stress tests indicated continued compliance with prudential requirements; the short-term liquidity ratio remained above the regulatory threshold. In insurance, turnover rose 5.1% to MAD 58.8 billion and net income increased 2.9% to MAD 4.4 billion, with the solvency margin improving to 354.7% from 330.4% amid a 70.7% rise in unrealised capital gains; stress tests also indicated overall resilience. The committee also reviewed market developments including a 25% MASI increase as of 1 July 2025, UCITS net assets of nearly MAD 792 billion as of 13 June 2025, and net subscriptions of MAD 93.65 billion since the start of 2025. It called for continued strengthening of Morocco’s anti-money laundering and counter-terrorist financing framework ahead of the third round of MENAFATF mutual evaluations scheduled to begin in 2026, and reiterated the need to proceed with pension reform based on the agreed two-pole system.
Moroccan Insurance Authority (ACAPS) 2025-07-08
Morocco's Coordination and Systemic Risk Monitoring Committee approves 2024 financial stability report and notes rising bank non-performing loans
Morocco's Coordination and Systemic Risk Monitoring Committee approved the 2024 Financial Stability Report, noting resilience in banks, financial market infrastructures, and insurers, despite credit risk deterioration and pension pressures. Economic growth is expected to accelerate, with moderate inflation and a widening current account deficit before narrowing by 2026. The committee stressed strengthening anti-money laundering and counter-terrorist financing frameworks and advancing pension reform.