The impact of credit risk and liquidity risk on banking stability: an applied study in the Moroccan context

Authors

  • Issam BELKADI ESLSCA Business School Rabat, Maroc
  • Acho SAMUEL Université Mohammed VI Polytechnique, Maroc

Keywords:

Liquidity risk, Credit risk, Banking stability, Z-Score, Banking performance

Abstract

This article analyzes the impact of liquidity risk and credit risk on the stability of Moroccan banks, based on a sample of 42 observations covering listed and unlisted commercial banks over the period 2018–2024. The study applies a panel econometric approach to assess the individual and joint effects of both risks on banking stability, primarily measured by the Z-Score. The findings highlight a positive relationship between credit risk and liquidity risk, confirming their interdependence. Taken separately, liquidity risk has a stronger impact on stability than credit risk, and when combined, liquidity exerts a more decisive influence on banking fragility. These results emphasize the need for integrated risk management and stronger prudential frameworks to safeguard the resilience and soundness of the Moroccan banking sector.

Classification JEL : G21, G28, G32, E44, C33

Paper type : Empirical Research

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Published

2025-09-30

How to Cite

BELKADI, I., & SAMUEL, A. (2025). The impact of credit risk and liquidity risk on banking stability: an applied study in the Moroccan context. International Journal of Accounting, Finance, Auditing, Management and Economics, 6(10), 521–542. Retrieved from https://ijafame.org/index.php/ijafame/article/view/2100

Issue

Vol. 6 No. 10 (2025)

Section

Articles

License

Copyright (c) 2025 Issam BELKADI, Acho SAMUEL

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