Bank Deposits in Morocco Grew By Over 5% in 2022

Deposits in banks operating in Morocco rose by a steady 5.1% at the end of the first 11 months of 2022, according to a new report from Morocco’s central bank, Bank Al-Maghrib (BAM).

Rabat – Deposits in banks operating in Morocco rose by a steady 5.1% at the end of the first 11 months of 2022, according to a new report from Morocco’s central bank, Bank Al-Maghrib (BAM).

With the increase, deposits in Moroccan banks reached over MAD 1 trillion ($95.8 billion). Household bank deposits saw a slightly more prominent annual growth rate at 5.5% at the end of November 2022, BAM’s report indicated.

The volume of Moroccan households’ deposits settled at MAD 811.8 billion ($77.7 billion), while deposits held by Moroccans residing abroad totaled MAD 195.6 billion ($18.7 billion) over the same period, the report noted.

Deposits held by Moroccan businesses rose by nearly 10%, climbing to MAD 182.2 billion ($ 17.4 billion) at the end of November 2022.

BAM also reported a noted improvement in access to financing for Moroccan businesses. The volume of loans issued for Moroccan businesses rose by nearly 6%, settling at MAD 1.024 trillion ($98 billion).

Businesses operating in non-financial services locked MAD 491 billion ($47 billion) in bank loans, marking an 8.1% annual increase.

Despite the notable improvement in financing for Moroccan businesses, access to financing remains a major hurdle hindering growth.

In December 2022, a report from Morocco’s economic intelligence agency, Higher Commission for Planning (HCP) sounded the alarm on the state of funding from Moroccan Small and Medium-Sized Enterprises (SMEs).

HCP argues that while Moroccan SMEs are already underfunded, access to financing was further constrained in 2021 compared to the previous year.

Excluding the financial sector, other Moroccan companies have locked MAD 1.2 billion ($114 million) in loans in 2021, sliding from MAD 7.4 billion (702 million) in 2020.