Banks’ liquidity needs increased to 111.6 billion dirhams (billion dirhams) on a weekly average in the first quarter of 2024, compared to 100.9 billion dirhams a quarter earlier, according to Bank Al-Maghrib (BAM).
This situation is the result, in particular, of the expansion of fiat currency, explains BAM in its recent report on monetary policy, published at the end of the 2nd quarterly meeting of its Council, held Tuesday in Rabat.
Under these conditions, Bank Al-Maghrib increased its injections to 123.9 billion dirhams, including 46.7 billion dirhams in the form of 7-day advances, 49.1 billion dirhams through repo operations delivered and 28.1 billion dirhams in guaranteed loan operations granted as part of financing support programs for very small, small and medium-sized enterprises (SMEs).
In this context, the average residual duration of the Bank’s interventions increased from 51.2 days to 63.2 days and the interbank rate remained aligned with the key rate.
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The said report also highlights that the latest available data indicates a slight reduction in the need for bank liquidity to 110.2 billion on average between April and May 2024.
In the Treasury bill market, rates continued to fall during the first quarter, both on the primary and secondary markets, particularly for long maturities. During the months of April and May, rates generally stabilized in both compartments.
Concerning the rates of issuance of certificates of deposit, they increased slightly in the first quarter of 2024. As for credit rates, those applied to 6-month deposits experienced quarterly increases of 7 basis points (bps) at 2.54% on average, while those at one year remained unchanged at 2.86%.
On the other hand, the minimum rate of remuneration for book accounts was set for the first half of 2024 at 2.73%, down 25 bps compared to the previous half-year. Under these conditions, banks’ funding costs recorded a slight decline of 2.3 bps from one quarter to the next.
The latest available data relating to the month of April 2024 indicate virtual stability, from one month to the next, in 6-month deposit rates at 2.4% and an increase of 14 bps to 2.96% for those at 12 months. Regarding lending rates, the results of the BAM survey of banks relating to the first quarter of 2024 indicate virtual stability from one quarter to the next in the overall average rate at 5.4%.
By institutional sector, the rates on loans to individuals increased by 15 bps to 6.09%, with in particular an increase of 4 bps to 7.22% for consumer loans and a decline of 2 bps to 4.81 % for those in housing.
As for the rates applied to business loans, they fell by 4 bps to 5.26% with declines of 5 bps to 5.3% for liquidity facilities, of 30 bps to 5.19% for real estate development loans as well as an increase of 21 bps to 5.11% for equipment loans.
With MAP
