Bank Al-Maghrib formally adopted regulatory texts covering the Net Stable Funding Ratio and the Internal Liquidity Adequacy Assessment Process in December 2024, completing a phase of Morocco's alignment with the Basel III international banking standards. The measures require Moroccan banks to fund long-term assets with stable resources and, through a structured internal liquidity adequacy assessment, to build sufficient liquidity buffers.
The NSFR sets out requirements for banks to hold sufficient stable funding relative to the profile of their assets and off-balance-sheet exposures over a one-year horizon, with a 100% minimum on a solo and consolidated basis, while the ILAAP framework establishes expectations for how institutions should internally assess and manage their liquidity needs. Together, the two instruments form the core of the Basel III liquidity architecture that the Basel Committee on Banking Supervision developed in the wake of the global financial crisis.
SUPERVISORY TOOLS
BAM also strengthened its supervisory tools in 2024 by deploying a forward-looking prudential assessment framework.
In 2024 BAM also returned to banks the results of its first SREP assessment (April to June) and extended the exercise to a wider panel of banks. The SREP is a comprehensive assessment through which supervisors evaluate each bank's business model, governance, capital adequacy, and liquidity position, and SREP scores are being linked to institution-specific Pillar 2 capital add-ons, communicated for information only over 2024-2026 and binding from 2027.
LIQUIDITY RATIOS
Morocco had already implemented the Liquidity Coverage Ratio, which governs short-term liquidity resilience, and the NSFR adoption fills the remaining gap in the structural liquidity dimension of Basel III. The two ratios are complementary, with the LCR addressing a 30-day stress window and the NSFR a one-year structural funding requirement.