Morocco's Coordination and Systemic Risk Monitoring Committee has approved the 2025 Financial Stability Report and, after reviewing systemic risk mapping, progress on the 2026-2030 financial stability roadmap and recent macro-financial developments, concluded that the Moroccan financial system remains resilient. The committee pointed to improved domestic growth, low inflation, ongoing fiscal consolidation and generally comfortable prudential margins, while noting that the external environment remains exposed to geopolitical tensions and high indebtedness. The assessment highlighted stronger performance across key segments of the financial system. Bank lending to the non-financial sector rose 6.5 percent in 2025, the non-performing loan ratio edged down to 8.3 percent and banks' aggregate net income increased 22.2 percent to MAD 19.2 billion, with average solvency and Tier 1 ratios at 16.1 percent and 13.5 percent respectively. Financial market infrastructures were assessed as financially and operationally resilient. In insurance, turnover rose 7.5 percent to MAD 63.2 billion and net income increased 21.4 percent to MAD 5.3 billion, while unrealized gains climbed to MAD 62.5 billion and the sector's solvency ratio reached 409.4 percent. Stress tests indicated overall resilience for both banks and insurers. The committee also noted that the Casablanca Stock Exchange entered a consolidation phase in the first half of 2026 after strong gains in 2025, while bond issuance and collective investment activity remained solid and retail participation in capital markets continued to broaden. The review also identified areas requiring continued policy attention. Public sector pension schemes showed some improvement in financial indicators following the second tranche of salary increases, but structural imbalances and weak long-term viability remain, reinforcing the need for systemic reform built around separate public and private poles. The committee also took note of progress on anti-money laundering and counterterrorist financing, while calling for further work to sustain compliance with international standards and prepare for the next MENAFATF mutual evaluation cycle. On the sidelines of the meeting, Bank Al-Maghrib, the Moroccan Capital Market Authority and the Moroccan Insurance Authority signed a new agreement updating their 2014 data-sharing arrangement to strengthen information exchange for financial stability purposes.

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