Morocco: Bank lending growth slows down
This is due to a lower level of liquidities within banks.The growth pace of bank lending slowed in September to one per cent year-on-year, down from 2.1 per cent year-on-year in August 2015, according to Bank Al Maghrib (BAM).
"The deceleration of bank credit reflects lower liquidity levels and is slowing the progression of all other loan categories, with the exception of leasing", the Central Bank said in a publication.
In 2014, Bank Al-Maghrib lowered its key rate from 2.75 per cent to 2.5 per cent to stimulate demand through loans to households and businesses. This was the lowest rate in twenty years, and had the effect of improving bank liquidity.
While the international financial environment is still unstable, Morocco’s banking sector is growing steadily, BMCE Bank CEO Othman Benjelloun told World Finance.
A number of key indicators are testimony to the strong growth momentum seen over the past decade. Banks in Morocco have had total assets tripled while shareholders’ equity has quadrupled.
Resources have also grown by 123 per cent and loans to the economy have risen by 225 per cent over the same period.
The banking penetration rate has gradually increased, with 60 per cent of the population now using banking services.