Rabat– Morocco’s bank credit to the non-financial sector (NFS) slowed to 3.4% in July 2025, down from 4.4% in June, according to the latest monetary statistics bulletin published by Bank Al-Maghrib (BAM).
The deceleration mainly reflects weaker lending to private non-financial companies, which grew by only 1.2%. In contrast, credit to households accelerated to 2.9%, up from 2.5%, while loans to public non-financial companies remained relatively stable at around 7.5%.
Analyzing credit by economic purpose, annual trends show a 5% decline in cash facilities, indicating reduced short-term liquidity borrowing.
Meanwhile, loans for equipment financing surged 15.2%, reflecting continued investment in productive assets. Mortgage loans expanded by 3.4%, and consumer credit grew by 3.9%, signaling steady household borrowing for housing and personal consumption.
Regarding credit quality, non-performing loans (NPLs) saw their growth slow to 5.4% in July, down from 5.7% in June, while the NPL ratio edged slightly higher to 8.7%, compared with 8.6% the previous month.
Earlier in the year, banking credit to the non-financial sector had shown more momentum. In February 2025, growth reached 3.5%, up from 3.3% in January. The increase reflected higher lending to both non-financial companies and households.
Credit to private non-financial companies rose to 1.6%, up from 1.2% in January, while public companies experienced a significant jump to 12% from 8.6% the previous month. Household credit growth also accelerated slightly, reaching 2.2% compared to 2% in January.
Overall, the data indicate a moderation in bank lending growth, with private sector credit showing subdued momentum, while household borrowing and targeted loans for investment and consumption continue to expand steadily.
