Morocco’s financial sector has shown remarkable resilience in 2024, continuing to perform robustly despite global economic uncertainties. According to the latest report from the Systemic Risk Coordination and Surveillance Committee (CCSRS), the banking sector saw a 17.3% increase in aggregate net profits during the first half of the year.
At the 20th annual meeting of the CCSRS, held at Bank Al-Maghrib’s headquarters in Rabat, officials emphasized that Moroccan banks maintained a strong financial foundation, with capital adequacy ratios well above regulatory requirements. The solvency ratio stood at 16%, while Tier 1 capital reached 13.3%, significantly surpassing the minimum thresholds of 12% and 9%, respectively. The committee’s report also highlighted that stress tests continue to affirm the banking sector’s resilience, even under severe economic deterioration scenarios, with the short-term liquidity ratio staying above regulatory minima.
The insurance sector mirrored this positive performance. By October 2024, Moroccan insurance premiums totaled MAD 49.6 billion ($4.96 billion), a 4.5% increase compared to the same period in 2023. Both non-life and life insurance sectors contributed to this growth, with life insurance showing a notable recovery after a slowdown in 2023.
On the broader economic front, Bank Al-Maghrib forecasts a slight slowdown in Morocco’s GDP growth from 3.4% in 2023 to 2.6% in 2024, with an expected rebound to 3.9% in the following two years. Inflation is anticipated to decrease significantly, falling to 1% in 2024, down from 6.1% the previous year.
The Casablanca stock market also displayed strong performance, with the MASI index up by 22% as of mid-December 2024. Liquidity in the market improved to 11.48% by November, up from 9.50% in 2023, signaling an increase in investor confidence.
The report further highlighted Morocco’s fiscal outlook, projecting that the Treasury’s debt will reach 70.5% of GDP in 2024, with plans to reduce it to 68.7% by 2026. Meanwhile, bank credit to the non-financial sector is expected to grow gradually, from 3.8% in 2024 to 5.5% by 2026.
Morocco’s financial infrastructure also remained strong, with the CCSRS confirming low risks to financial stability both financially and operationally. The committee noted that Morocco’s successful exit from the Financial Action Task Force (FATF) grey list was a significant achievement and stressed the need for continued vigilance as the country prepares for the MENAFATF’s third round of mutual evaluations in 2026.
As Morocco’s financial system continues to demonstrate its strength, the country appears well-positioned to weather global economic turbulence and maintain steady growth in the years ahead.
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