The Committee for Coordination and Monitoring of Systemic Risks (CCSRS) convened on Tuesday at Bank Al-Maghrib’s (BAM) headquarters in Rabat and noted that the banking sector continued to display solid fundamentals in 2023.
“In terms of profitability, the aggregate bank profits at the end of 2023 rebounded by 20.4% after a 13% contraction in 2022, primarily due to the significant recovery in market operations,” BAM stated in a communiqué regarding the CCSRS’s 19th meeting.
Concerning solvency, banks achieved an average solvency ratio of 15.5% and a Tier 1 capital ratio of 12.9% on a social basis, both exceeding the regulatory minimums of 12% and 9%, respectively. On a consolidated basis, these ratios stood at 13.5% and 11.6%.
Additionally, the macro-stress test exercise continues to demonstrate the banking sector’s resilience in scenarios simulating deteriorating macroeconomic conditions. The short-term liquidity ratio remains comfortably above the regulatory threshold of 100%.
Financial market infrastructures also maintain high resilience, both financially and operationally, posing a low risk to financial stability.
During this meeting, the Committee reviewed and approved the financial stability report for 2023 and assessed the progress of the financial stability roadmap for 2022-2024.
The Committee also examined the findings of its monthly subcommittee’s work and the results of the systemic risk assessment, noting that monitoring indicators continue to show the robustness and resilience of Morocco’s financial sector.
Furthermore, the CCSRS commended the efforts to finalize the alignment of the national framework for combating money laundering and terrorist financing with the recommendations of the Financial Action Task Force (FATF). This compliance was confirmed by the MENAFATF during its plenary meeting in Manama in May 2024.
