Morocco
Banking sector profile — Middle East & North Africa
Data as of October 2026 • TGB Intelligence Unit
Policy rate as of 7 October 2026: 2.25% (source: Bank Al-Maghrib)
Banking sector at a glance
Structure and performance
Morocco's banking system comprised 24 banks at end-2025 – 19 conventional and five participative – alongside 30 finance companies, six offshore banks, 10 microfinance institutions and 20 payment institutions supervised by Bank Al-Maghrib. Banks' balance sheets (activity in Morocco) grew 6.8% in 2025 to MAD 2,039bn, equivalent to 119% of GDP on the central bank's measure, while the 11 banking groups reported consolidated assets of MAD 2,597bn. Concentration is high: the three largest banks held 61.2% of sector assets and the five largest 76%. Seven banks are majority state-owned and five majority foreign-owned.
Funding is predominantly retail and low-cost. Customer deposits rose 7.6% to MAD 1,372bn in 2025, sight deposits made up 73.3% of the total, and the average cost of funds fell to 1.20%. Gross lending grew 6.5% to MAD 1,238bn (72% of GDP), led by equipment loans, which rose about 22% as infrastructure investment accelerated. Three groups – Attijariwafa Bank, Groupe Banque Populaire and Bank of Africa – operate 45 subsidiaries in Africa; foreign subsidiaries contributed 24% of their consolidated assets and 34% of their net banking income in 2025.
Asset quality is stable but non-performing loans remain structurally elevated at 8.3% on a solo basis (8.8% consolidated) at end-2025, with provision coverage of 68%. Capital is comfortably above minima: average solvency and Tier 1 ratios were 16.1% and 13.5% against requirements of 12% and 9%, the leverage ratio averaged 7.73% and the average LCR was 172%. Profitability improved markedly, with aggregate net income up 22.2% to MAD 19.2bn, lifting ROE to 11.1% and ROA to 1.0%, helped by a 25.1% fall in the cost of risk.
Key risks include sovereign and cyber risks in the African subsidiaries, which Bank Al-Maghrib monitors with host supervisors through supervisory colleges, and the economy's sensitivity to climatic conditions. Macroeconomic conditions remain supportive: inflation averaged 0.3% in January–August 2026 and the central bank projects growth of 4.4% in 2026. However, higher energy import costs linked to Middle East hostilities are expected to widen the current-account deficit to 4.6% of GDP in 2026, and Bank Al-Maghrib describes the uncertainty surrounding its outlook as very elevated.
Structural trends
The shifts shaping banking in Morocco.
Participative banking is expanding: participative banks and windows grew total assets to MAD 48.6bn in 2025 from MAD 38.9bn in 2024, with an NPL ratio of 1.5%.
Branch networks are shrinking as digital use rises: branches fell by 151 to 5,541 in 2025, while bank accounts reached 39.8 million, held by 62% of adults on Bank Al-Maghrib's measure.
Cross-border groups keep growing in Africa: their foreign subsidiaries held MAD 427.3bn of assets at end-2025, 24% of consolidated balance sheets, across 27 African countries.
Corporate credit is driving loan growth: equipment loans rose about 22% in 2025 to roughly MAD 350bn, while consumer and housing loans grew 3.8% and 1.5% respectively.
Leading institutions
Largest banks in Morocco by total assets.
| # | Bank | Total assets (US$) | Type |
|---|---|---|---|
| 1 | Attijariwafa Bank | US$87.1bn | Universal |
| 2 | Banque Centrale Populaire | US$62.6bn | Cooperative |
| 3 | Bank of Africa (BMCE) | US$47.9bn | Universal |
| 4 | Crédit Agricole du Maroc | US$19.2bn | State-owned |
| 5 | CIH Bank | US$17.9bn | Commercial |
| 6 | Saham Bank | US$14.9bn | Universal |
| 7 | Crédit du Maroc | US$9.2bn | Universal |
| 8 | BMCISubsidiary of BNP Paribas | US$8.6bn | Universal |
Largest banks in Morocco by total assets, FY2025 audited accounts. Domestic groups as in the TGB Bank Rankings; other domestic banks from their own audited accounts; subsidiaries of foreign groups shown with their own accounts and marked. Not a ranking table. Not included: Al Barid Bank, whose FY2025 accounts were subject to a limited review rather than an audit. Converted at official central-bank rates for each fiscal year-end.
Supervision and capital rules
Bank Al-Maghrib licenses and supervises credit institutions under Law 103-12, combining off-site and on-site supervision with an annual SREP, now in its second cycle. Basel III capital rules are in force, with minimum solvency and Tier 1 ratios of 12% and 9%, a leverage ratio introduced in 2021 and liquidity coverage requirements. Deposits are protected by the bank deposit guarantee fund managed by SGFG. In 2025 Bank Al-Maghrib finalised, with the Ministry of Finance, a reform of the bank resolution regime that designates it as resolution authority, now before Parliament; adopted a circular on the classification and provisioning of non-performing loans in December 2025 and climate-risk disclosure directives; and began drafting an open-banking framework. A MENAFATF mutual evaluation is scheduled for November 2026.
What changed in 2026
- March 2026: The IMF published on 23 March the conclusion of Morocco's 2026 Article IV consultation and the mid-term review of its Flexible Credit Line arrangement.
- March 2026: CIH Bank reported 2025 group net profit of MAD 1.09bn, up 24.4%, with consolidated assets up 16.1% to MAD 163.7bn.
- July 2026: Bank Al-Maghrib published its 2025 banking supervision report, showing sector net income up 22.2% to MAD 19.2bn and an NPL ratio of 8.3%.
- September 2026: Bank Al-Maghrib held its key rate at 2.25% on 22 September, a sixth consecutive hold, forecasting 2026 inflation of 0.7% and growth of 4.4%.
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