The Moroccan Capital Markets Authority published the conclusions of the Coordination and Systemic Risk Monitoring Committee’s 21st meeting, hosted at Bank Al‑Maghrib, which approved the 12th edition of Morocco’s 2024 Financial Stability Report and reviewed the 2022–2024 financial stability roadmap and systemic risk mapping. The committee’s assessment pointed to continued resilience across banks, financial market infrastructures and insurers, alongside a pickup in credit risk and persistent structural imbalances in public-sector pension schemes. The committee expects the global economy to slow further amid heightened uncertainties and projected domestic growth of 4.6% in 2025 and 4.4% in 2026, with inflation expected at 1.1% and 1.8% respectively. The current account deficit is projected to widen to 2.1% of GDP in 2025 before narrowing to 1.9% in 2026, while official reserve assets are expected to cover more than five months of imports. The fiscal deficit, excluding proceeds from the sale of State holdings, was 3.9% of GDP in 2024 and is projected at 3.4% in 2026, with Treasury debt expected to decline from 67.7% of GDP in 2024 to 65.6% in 2026. Bank credit to the non-financial sector is projected to grow by about 6% on average in 2025–2026, while the non-performing loan ratio increased to 8.8% at end‑April 2025 from 8.4% in 2024 and provisioning remained around 68%. Banks reported corporate net income up 24%, average Tier 1 and total capital ratios of 13.5% and 16.2%, and stress tests indicating continued compliance with prudential requirements, with the short-term liquidity ratio above the regulatory threshold. In capital markets, the MASI equity index was up 25% as of July 1, 2025, and UCITS net assets reached nearly MAD 792 billion as of June 13, up 21.2% since end‑2024, driven by net subscriptions of MAD 93.65 billion. In insurance, turnover rose 5.1% to MAD 58.8 billion and net income increased to MAD 4.4 billion, with the solvency margin improving to 354.7%. The committee reiterated the need to proceed with pension reform based on the agreed two‑pole system and called for continued efforts to strengthen the anti‑money laundering and counter‑terrorist financing framework ahead of the MENA FATF third-round mutual evaluations scheduled to begin in 2026.
Moroccan Capital Markets Authority 2025-07-07
Moroccan Capital Markets Authority publishes systemic risk committee assessment approving the 2024 financial stability report and noting non-performing loans at 8.8%
The Moroccan Capital Markets Authority's Coordination and Systemic Risk Monitoring Committee approved the 12th edition of Morocco’s 2024 Financial Stability Report, noting resilience in banks and insurers despite rising credit risk and pension imbalances. The committee projects domestic growth of 4.6% in 2025 and 4.4% in 2026, with inflation at 1.1% and 1.8% respectively, and stressed the need for pension reform and stronger anti-money laundering measures. The MASI equity index rose 25% by July 2025, and UCITS net assets increased 21.2% since end-2024.