Bank Of Africa. Credit: Le Desk
The Systemic Risk Coordination and Monitoring Committee (CCSRS), meeting on Tuesday at the headquarters of Bank Al-Maghrib (BAM) in Rabat, noted that the banking sector continued to display solid fundamentals in 2023.
“In terms of profitability, the aggregate result of banks at the end of 2023 recorded a rebound of 20.4% after a contraction of 13% in 2022, mainly thanks to the sharp recovery in the result of market operations”, BAM said in a statement on the 19th CCSRS meeting.
As for solvency, the banks achieved, on a social basis, an average solvency ratio of 15.5% and an average Tier 1 capital ratio of 12.9%, higher than the regulatory minima of 12% and 9% respectively, the same source said, specifying that on a consolidated basis, these ratios stand at 13.5% and 11.6%.
Moreover, the macro-stress solvency test exercise continues to demonstrate the resilience of the banking sector in the face of scenarios simulating the deterioration of macroeconomic conditions. The liquidity coverage ratio remains at a comfortable level, above the regulatory threshold of 100%.
As for financial market infrastructures, they continue to demonstrate strong resilience, both financially and operationally, and still present a low level of risk to financial stability.
At this meeting, the Committee reviewed and approved the Financial Stability Report for the year 2023 and took stock of the progress of the Financial Stability Roadmap covering the period 2022-2024.
He also reviewed the conclusions of the work of his monthly subcommittee, as well as the results of the assessment of systemic risks and noted in this regard that the monitoring indicators continue to show the solidity and resilience of the Moroccan financial sector.
Furthermore, the CCSRS welcomed the efforts made to complete the compliance of the national system for combating money laundering and terrorist financing with the FATF recommendations. This compliance was endorsed by the MENAFATF at its plenary meeting held in Manama in May 2024.
