Morocco's central bank, Bank Al-Maghrib, is accelerating efforts to establish a secondary market for non-performing loans (NPLs), which would allow banks to sell these assets and improve their liquidity. Governor Abdellatif Jouahri said the aim is to free up banks' financing capacity and revive lending.
NPL CHALLENGES IN MOROCCO
Jouahri said the stock of bad loans held on bank balance sheets ties up considerable resources and limits lenders' capacity to channel more financing to the economy. Bank Al-Maghrib is working with its partners to create a market for buying and selling unpaid loans past their deadlines. Such a market would allow banks to reduce risk, free up capital and maintain profitability, while investors would seek to profit by restructuring or recovering value.
MECHANICS OF THE REFORM
Under draft legislation prepared with support from the International Finance Corporation, banks would be able to transfer distressed loans directly, with guarantees linked to the loans passing automatically to buyers, while safeguards protect borrowers and their personal data. Jouahri told a national seminar in Rabat on 24 March, organised with the Ministry of Justice, that the bad-loan ratio in the Moroccan banking sector stood at 8.2% at the end of 2025, with outstanding bad loans exceeding MAD 100 billion, a level he described as high by international standards.
Jouahri also noted that Bank Al-Maghrib revised its circular on the classification of bank loans in December 2025, introducing a new category of sensitive loans, tightening restructuring conditions and broadening the definition of default.
ECONOMIC IMPACT OUTLOOK
Jouahri said a dedicated NPL market would allow lenders to transfer such assets, improve liquidity and redirect financing towards businesses and households.
Bank Al-Maghrib has been working on the project since 2022, with support from the International Finance Corporation.
JUDICIAL RECOVERY
Jouahri also highlighted digital tools for recovery, including online auction platforms and tools to help judges and experts calculate bank interest.
Mounir Mountassir Bilah, secretary general of the Supreme Council of the Judiciary, welcomed the draft law on the direct transfer of non-performing loans as an awaited legislative response, provided it is carried out transparently and respects consumer rights and personal data.