BAM meets all the refinancing requests of Moroccan banks

The Central Bank has met all the refinancing requests of the banking sector, the Wali of Bank Al-Maghrib (BAM), Abdellatif Jouahri, said on Wednesday.

Speaking at a press briefing held in video conference mode at the end of the third BAM Board meeting of the year 2021, Jouahri noted that “everything that has been requested as financing from the Central Bank has been fully served to the banking sector.”

Banks, he continued, have collateral margins that exceed 400 billion dirhams (MMDH), adding that the peak was around 80 MMDH.

Jouahri has, in this sense, raised the extension of flexibilities on the prudential level, stressing that the solvency ratios are so far “reassuring”. “We are in a global ratio which is around 15% to a ratio of equity of first category which is around more than 11%,” he noted.

Regarding the outstanding debts, the Wali of BAM noted that the Central Bank follows the fate of these debts which have recorded a significant increase, ensuring that they are “well provisioned”.

According to the Monetary Policy Report, overdue loans increased by 11.1% and their ratio to outstanding bank credit stood at 8.6%. They increased by 11.9% for private non-financial enterprises and by 9.9% for households.

At this meeting, the Board analysed, in the light of health developments, the economic situation at the national and international levels, as well as the Bank’s medium-term macroeconomic projections.

He noted in this regard the significant progress achieved by the Kingdom in the field of immunization, the continued recovery of economic activity and the evolution of inflation at moderate levels despite some increase in external inflationary pressures.

In addition, the Council was briefed on the latest developments on the foreign exchange market and the impact of the Bank’s recent interventions to absorb cyclical currency surpluses.

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