a portfolio of outstanding debt of nearly 85 billion dirhams in 2021

The portfolio of non-performing loans of banks decelerated by recording an increase of 6.7%, to reach nearly 85 billion dirhams (MMDH) in 2021, against an increase of 14% a year earlier, according to the 9th report. report on financial stability, published by Bank Al-Maghrib (BAM), the Insurance and Social Welfare Supervisory Authority (ACAPS) and the Moroccan Capital Market Authority (AMMC).

This slowdown, which concerned both loans granted to households and those in favor of non-financial companies, would be linked to the resumption of economic activity, specifies the report. Non-performing household loans, held by banks, decelerated compared to 2020, going from an increase of 19.3% to 7.8% and peaking at more than 30 billion dirhams, adds the same source.

With regard to non-financial companies, their defaulted loans increased by 6.6% against 11.3% a year earlier. The most affected sectors of activity are those of construction, manufacturing industries and hotels, recording increases of 17.3%, 9.1% and 30.1% respectively, i.e. additional claims of 1.5 billion dirhams, 1.3 billion dirhams and 1.1 billion dirhams from one year to another.

The report said that overall, the average loss ratio of the banking sector stood at 8.5%, against 8.2% a year earlier. For the three systemic banks together, this ratio stood at 7.9% in 2021 after 7.5% in 2020. By category, the outstanding amount of compromised loans, representing more than 83% of non-performing loans, experienced a deceleration, returning to 8.7%, after 13.8% a year earlier, to settle at 70.8 billion dirhams. Pre-bad debts increased by 12.8%, while bad debts recorded a contraction of 12.5%. These represent respectively 8% and 9% of total non-performing receivables.

In this context of increased claims, specific provisions increased by 4.9% against 12.9% in 2020, bringing the average coverage rate to nearly 68% after 69%.

This rate stands at 74.8% for bad debts, 50.7% for doubtful debts, and 9.4% for pre-doubtful debts. For the three systemic banks, the coverage rate was around 67%, according to the report. Banks have also constituted general provisions, amounting to 13.5 billion dirhams, down slightly by nearly 1.9% compared to 2020. These provisions constitute a buffer for banks to cover risks latent.


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