Overview of Moroccan banking sector in the era of covid-19

Abstract

The current global crisis, known as COVID-19, is the biggest challenge we have faced since the Second World War. However, the pandemic is more than just a health crisis; it is also an unprecedented socioeconomic crisis that is exerting pressure on all of the countries it affects. As a result, the effects of the pandemic spread quickly to the global level, affecting a wide range of international economic sectors through a combination of supply and demand shortages. The intensification of the crisis has had a significant impact on the financial system, particularly the banking sector. So, the objective of this article is to analyze the repercussions of the crisis of the covid-19 on the Moroccan banking sector, it is a question of presenting first of all, the state of affairs of the banks in Morocco while being based on a method of descriptive analysis, which enabled us to carry out observations, of which most important relate to the stake of liquidity, the acceleration of the outstanding debts and the rise of the credit risk and to quote thereafter the measures and the strategies taken by the authorities in particular Bank Al Maghrib and the international monetary fund to remedy the banking indicators, also the degree of the commitment of the Moroccan banking sector in the prevention and the management of the consequences of Covid-19 at the social, economic and financial level in Morocco.

Key words:  Moroccan banks, Covid-19 crisis, the liquidity issues, credit risk, supply shock, demand shock.

JEL Classification : E42, E43, E52, E58, G21.

Paper type: Theoretical article