2023-07-04 21:21:35
“Given the increase in non-performing receivables, the claims rate for the banking sector stood at 8.4% at the end of 2022 then at 8.9% at the end of April 2023. The rate of coverage of these receivables by provisions remained around 68%,” BAM said in a press release published after the 17th meeting of the CCSRS.
Indeed, in a difficult economic environment, bank credit intended for the non-financial sector grew at an accelerated pace in 2022 before slowing down during the first four months of 2023, underlines the same source, noting that the banking sector continues to show solid fundamentals.
In terms of capitalization, at the end of 2022, the banks generated an average solvency ratio of 15.7% and an average Tier 1 capital ratio of 12.4%, higher than the regulatory minimums of 12% and 9 %. On a consolidated basis, these ratios stand at 13.4% and 11.2% respectively.
The solvency macro-stress test exercise continues to show the resilience of the banking sector in the face of scenarios simulating the deterioration of macroeconomic conditions. In terms of profitability, on the other hand, the aggregate result of banks on a corporate basis fell by nearly 13%, compared to an increase of 76.4% in 2021.
This change is mainly explained by the 52% contraction in the result of market transactions under the effect of the increase in money market and bond rates. The short-term liquidity ratio continues to show a comfortable level above the regulatory threshold of 100%.
With regard to financial market infrastructures, they continue to show strong resilience both financially and operationally and still present a low level of risk to financial stability.
During this meeting, the CCSRS examined and approved the report on financial stability for the year 2022 and took stock of the progress of the financial stability roadmap covering the period 2022-2024.
He also reviewed the summary of the work of his monthly sub-committee and noted that the monitoring indicators examined continue to show the solidity and resilience of the Moroccan financial sector.
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