Morocco’s banking booms
Morocco’s banking sector is booming, with the nation’s financial stability watchdog reporting net profits of a staggering 24%, reports The North Africa Post on July 8th. The surge drove the sector’s return on assets to 0.9% and its return on equity to 9.5%, suggesting efficient capital utilization and strong profitability metrics.
Such a remarkable performance reasserts the nation’s banking sector as the key booster of its economy. This latest news auspiciously follows recent news of economic resurgence of Morocco, as reported by Maghrebi.org on July 2nd.
The watchdog, Committee for Coordination and Monitoring of Systemic Risks (CCSRS), met on July 7th at Bank Al-Maghrib HQ in Rabat, where it was emphasized that this boom was a benefit of Morocco’s strong market activity. The committee approved the 12th edition of the yearly financial stability report for 2024 and validated the completion of the 2022-2024 financial stability roadmap.
Financial soundness indicators give a promising account of the banking sector’s safety, as buffer capital is amassed at a comfortable surplus above regulatory requirements. At average core capital and total capital ratios of 13.5% and 16.2% respectively on an individual basis, and a consolidated calculation at 12.3% and 14.1% respectively for 2024, the markers are very encouraging.
Short-term liquidity ratios also hover comfortably above regulatory thresholds and prudential requirements of regulatory bodies are being conformed to dutifully across the board.
Additionally, substantial progress was noted in strengthening Morocco’s anti money-laundering and counter-terrorism financing frameworks.
A stress test conducted by Bank Al-Maghrib reinforced confidence in the sector, confirming the bank’s toughness in the face of severe economic shocks and their ability to maintain compliance with requirements in such scenarios.
The strength of Morocco’s banking sector, much like the nation’s political steadfastness, so far continue to drive the nation’s positive investment outlook as well as its wider economic health. There is much to be hopeful about in a nation fast becoming a beacon of stability in the region.
The North Africa Post, Maghrebi.org
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