Bank Al-Maghrib (BAM) unveiled its 20th annual report on banking supervision for the year 2023 at a press conference in Casablanca. Presented by Nabil Badr, Deputy Director of the Banking Supervision Directorate at BAM, the report provides a comprehensive overview of the Central Bank’s regulatory and control activities, as well as the operations of credit institutions for the past year.
Badr highlighted a 4.8% increase in bank credit, driven primarily by equipment loans, and a 3.4% rise in deposits, mainly in demand accounts. Non-performing loans stabilized at 8.5% of the total credit portfolio. Additionally, banking results improved in 2023 due to easing interest rate conditions in the market.
From a prudential perspective, the solvency ratio remained stable at 15.5%, and Tier 1 capital stood at 12.9%, well above the regulatory minimum thresholds of 9% and 12%, respectively. The short-term liquidity ratio (LCR) also maintained a comfortable position relative to regulatory minimums.
On the regulatory front, the report noted BAM’s ongoing efforts in 2023 to align with international banking standards to strengthen sector resilience. Notably, in coordination with the World Bank, BAM completed its first assessment of banks’ exposure to financial risks induced by climate change.
In the realm of financial integrity, BAM’s initiatives to bolster Morocco’s anti-money laundering and counter-terrorism financing (AML/CTF) framework resulted in Morocco’s removal from the Financial Action Task Force’s (FATF) and the European Union’s grey lists.
The report also highlighted BAM’s 2023 initiatives to support the digitalization of banking services. Following the adoption of regulations governing crowdfunding platforms, BAM processed the initial applications for licensing peer-to-peer lending and donation-based crowdfunding activities.
Furthermore, BAM continued to oversee the regulation of crypto assets, digital authentication, the security of digital banking services, and the cyber resilience of banking operators.
Enhancing the quality of bank-client relationships remained a priority for BAM. In 2023, the Central Bank launched a bank fee and value date comparator and adopted an interbank charter supporting individuals with disabilities.
The report concluded by noting BAM’s efforts to collaborate with market operators to develop banking and payment services tailored to families benefiting from government social aid programs, positively impacting financial inclusion and banking access.
