Rabat – According to Morocco’s central bank, Bank Al-Maghrib, bank deposits in Morocco saw an annual increase of 7.3% in September 2021, progressing at a much faster rate than the 4.8% recorded in September 2020.
The report further details that Islamic funding in the North African country stood at MAD 363 billion in September of 2021, increasing by 4.6% from the same period last year.
Moroccan creditors used Islamic funding, commercially known as Murabaha funding, to acquire up to MAD 15 billion in housing loans in September 2021, recording an increase of 52.7% from the same period in 2020.
Islamic funding for consumer loans was set at MAD 55 billion in September 2021, increasing by 1.3% from September 2020.
Also Read: Islamic Financing on the Rise in Morocco
The overall recovery of the banking sector in Morocco was strong in the first quarter of 2021, according to FitchRatings, an American credit rating agency.
As Morocco continues its effort to modernize the banking sector, the North African country now has some of the largest banks in Africa.
Morocco’s banking sector is dominated by local banks, accounting for 82.3% of the country’s financial institutions.
The sector comprises 19 traditional banks, five Islamic banks, 32 financing entities, 13 lending bodies, seven offshore banks, and nine money transfer entities.
Morocco’s banking participation rate has been on a steady increase in recent years, reaching 60% in 2019, with banking institutions’ continuing efforts to include rural and non-affluent segments of the population in the banking sector.
