Theoretical study of the mechanisms mobilized by the Moroccan banking system in times of the covid-19 crisis

Abstract

The year 2020 was marked by a deep economic recession linked to the Covid-19 pandemic, which did not fail to impact the indicators of the Moroccan banking system, which suffered greatly from the negative effects of the pandemic through the rationalization of credits , the rise in non-payments, the fall in liquidity, as well as the significant drop in its profit margin, because the banking networks risked seeing their income fall in several activities, including investment banking, asset management and banking financing, this situation has created an uncertain environment, reminiscent of the 2008 financial crisis.

Although the Net Banking Product of Moroccan banks has experienced a remarkable decline in addition to the evolution of the cost of risk, but the Moroccan banking sector has succeeded a second time in overcoming the crisis caused by the spread of the covid-19 pandemic thanks prudential rules imposed by the central bank.

In view of the above, the purpose of this article is to describe the different transmission channels of the covid-19 shock to the Moroccan banking sector, while trying to propose some recommendations to ensure a better recovery of banking activity in the future. end of this health crisis.

Keywords: banking sector; health crisis; Covid-19; Banking risk

JEL Classification:  G21, G33

Paper type: Theoretical Research