Moroccan banks are resilient to shocks, says Bank Al-Maghrib
Morocco's Central Bank has released its new report on financial stability.Bank Al-Maghrib, the central bank of Morocco, has released its new report on financial stability, which focuses on developments within financial markets and asses banks' resilience.
"Banks have posted results down 6.5 per cent this year, as they were under pressure from tightening their lending margins and the high cost of credit risk, as market results were more modest," the document states.
As a result, they have increased their cash reserves by 13 per cent, while substantially reducing lending to businesses due to the higher average rate of nonperforming loans, which went from 6.9 per cent to 7.4 per cent between 2014 and 2015.
However, the report noted that "the stress tests have confirmed the banks' resilience to shocks emanating from macroeconomic conditions, liquidity position or their exposure via their foreign subsidiaries."