Moroccan banking sector strengthens as Bank Al-Maghrib highlights 2025 resilience

The Moroccan banking sector maintained strong momentum in 2025, supported by economic growth, improved profitability, and solid capital buffers, according to Bank Al-Maghrib’s 22nd annual banking supervision report presented in Casablanca.

The Moroccan banking sector recorded a 6.5% increase in bank lending and a 7.6% rise in customer deposits during the year. The central bank also reported stronger earnings among conventional banks and capital levels that remained comfortably above regulatory requirements. While highlighting the sector’s resilience, Bank Al-Maghrib urged institutions to remain cautious regarding dividend distribution.

Morocco’s economy expanded by 4.9% in 2025 despite a global environment marked by geopolitical tensions and uncertainty surrounding international trade policies. Inflation remained contained at an average of 0.8%, allowing Bank Al-Maghrib to lower its benchmark interest rate by 25 basis points to 2.25% in March before maintaining that level through the remainder of the year.

The central bank continued to support banking liquidity and expanded initiatives aimed at improving financing access for very small businesses. Against this backdrop, the banking sector benefited from stronger lending activity while customer deposits continued to grow steadily. Non-performing loan ratios improved slightly, reaching 8.3% on a standalone basis and 8.8% on a consolidated basis.

Profitability and capital strength improve

Financial performance across the sector strengthened significantly during 2025. Combined profits of conventional banks increased by 22%, while participatory banks continued their positive trajectory after returning to profitability in recent years.

Capital adequacy indicators remained well above regulatory thresholds. The average solvency ratio reached 16.1%, compared with a minimum requirement of 12%. The average Tier 1 capital ratio stood at 13.5%, exceeding the regulatory minimum of 9%. Short-term liquidity ratios also remained at comfortable levels.

Despite these positive indicators, Bank Al-Maghrib reiterated its call for prudent dividend policies to preserve the banking system’s ability to withstand future shocks and uncertainties.

Climate and cyber risks gain importance

The report highlights a growing focus on emerging risks beyond traditional banking supervision. Climate-related risks, cybersecurity challenges, and the impact of digital transformation are becoming increasingly important components of the supervisory framework.

Bank Al-Maghrib strengthened disclosure requirements related to climate risks and enhanced data collection concerning major borrower exposures. The central bank also contributed to the development of Morocco’s national green finance taxonomy and the implementation of the country’s climate finance strategy through 2030.

On the digital front, supervisory efforts targeting cyber risk intensified. Cooperation with the General Directorate for Information Systems Security continued as banks expanded their digital services and increased exposure to cyber threats.

Regulatory framework advances for fintech and digital finance

The report identifies financial innovation as a key area of development. Bank Al-Maghrib continued supporting Morocco’s fintech ecosystem, including the effective launch of collaborative financing activities.

In December 2025, the central bank introduced a Fintech Journey Guide designed to streamline engagement with fintech operators. It also contributed to the completion of draft legislation governing cryptoassets and initiated work on an Open Banking framework with technical assistance from the World Bank and in consultation with the Professional Grouping of Moroccan Banks.

These initiatives aim to foster innovation while ensuring secure data sharing, consumer protection, and financial stability.

Reforms target non-performing loans

Banking reforms continued to advance during 2025. A proposed overhaul of the banking resolution framework was submitted to Parliament following coordination with the Ministry of Finance. Authorities also finalized draft legislation allowing the direct transfer of non-performing loans.

At the same time, prudential regulations governing impaired loans were strengthened through updated classification and provisioning requirements.

Although the overall non-performing loan ratio declined slightly to 8.3%, challenges remain in certain segments. Outstanding non-performing loans held by banks and finance companies for non-financial businesses increased by 5% to 73.7 billion dirhams, corresponding to a risk ratio of 11.2%.

Financial inclusion remains a strategic priority

Expanding access to finance for small businesses and self-employed entrepreneurs remains a central objective for policymakers. In December 2025, Bank Al-Maghrib and its public and private sector partners adopted a charter dedicated to financing and supporting very small enterprises.

The initiative forms part of a broader financial inclusion strategy aimed at reducing social and territorial disparities while expanding access to financial services. The development of payment accounts and digital payment solutions continues to support this objective.

Efforts to strengthen anti-money laundering and counter-terrorism financing controls also continued in cooperation with the National Financial Intelligence Authority as Morocco prepares for its third regional evaluation cycle scheduled for November 2026.

Customer protection moves higher on the agenda

Bank Al-Maghrib further reinforced its customer protection framework during the year. Supervisory efforts focused on compliance with account closure procedures, mortgage release requirements, and service quality standards.

The central bank introduced mystery shopping exercises to assess customer experience in banking branches and continued promoting pricing transparency and accessibility of financial services for people with disabilities.

The report concludes that Morocco’s banking industry entered 2026 from a position of strength. Sustaining this resilience while adapting to green finance, cybersecurity challenges, fintech innovation, Open Banking, financial inclusion, and emerging digital assets will remain among the sector’s defining priorities.