Pass-through of Bank Al-Maghrib policy rate to bank lending rates: degree, speed and asymmetry (2010-2025)

Authors

  • Ayoub SAIDI National School of Business and Management, Ibn Tofail University of Kenitra, Morocco
  • Ahlam QAFAS National School of Business and Management, Ibn Tofail University of Kenitra, Morocco

Keywords:

Monetary transmission; Policy rate; Lending rates; Pass-through; ARDL; NARDL; Asymmetry; Bank Al-Maghrib; Morocco

Abstract

This paper investigates the pass-through of Bank Al-Maghrib’s (BAM) policy rate to commercial bank lending rates in Morocco over the period 2010-2025, using quarterly data. An ARDL bounds testing approach and its nonlinear extension NARDL are employed to estimate the degree, speed, and symmetry of interest rate transmission. The Pesaran bounds test confirms a cointegrating relationship. The long-run pass-through indicates over-complete transmission, while the error correction term implies moderate adjustment speed with a half-life of approximately six months. NARDL estimation reveals significant asymmetry: the pass-through of policy rate decreases exceeds that of increases. This counterintuitive finding challenges the conventional downward-rigidity hypothesis and appears to reflect competitive dynamics specific to the Moroccan banking market, echoing recent evidence from Colombia and Latin America.

JEL Classification: E43, E52, E58, G21.

Type of paper: Empirical research

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Published

2026-03-06

How to Cite

SAIDI, A., & QAFAS, A. (2026). Pass-through of Bank Al-Maghrib policy rate to bank lending rates: degree, speed and asymmetry (2010-2025). International Journal of Accounting, Finance, Auditing, Management and Economics, 7(3), 308–326. Retrieved from https://ijafame.org/index.php/ijafame/article/view/2317

Issue

Vol. 7 No. 3 (2026): March

Section

Articles

License

Copyright (c) 2026 Ayoub SAIDI, Ahlam QAFAS

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