Stocks Market
Morocco’s Bad-Loan Ratio Climbs to 8.3 % as Households & Corporates Fall Behind
Bank Al-Maghrib’s latest data show non-performing loans jumped 4.6 % in January 2026, pushing the system-wide NPL ratio from 8 % to 8.3 %. Household arrears rose 4.9 % while private non-financial companies trailed closely at 4.1 %. Coupled with a 9 % surge in liquid placements, the numbers hint at tightening credit quality and could weigh on banking-sector profitability in the near term.
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Bank Al-Maghrib sounded a fresh alarm on credit quality Wednesday, disclosing that non-performing loans (NPLs) grew 4.6 % in January 2026 and lifted the sector’s bad-loan ratio to 8.3 %—its highest level since the fourth quarter of 2025.
Households and corporates both slip
The central bank’s first-quarter monetary-policy report shows households drove the deterioration, with past-due loans rising 4.9 % to a ratio of 10.7 % of total household credit. Private non-financial companies followed closely, posting a 4.1 % increase that pushed their NPL ratio to 12.9 %.
Shadow-bank lending surges
While traditional banks tightened underwriting, non-bank financial firms filled part of the gap. Their outstanding credit to the non-financial sector leapt 18.4 % in Q4 2025:
- Finance companies: +16 %
- Off-shore banks: +40 %
- Micro-credit associations: +11.5 %
Analysts warn this rapid growth outside the regulated perimeter could store up systemic risk if underwriting standards slip.
Liquid placements accelerate
Investors’ appetite for liquid instruments also quickened, with total holdings rising 9 % in January versus 8.6 % in Q4. The rebound was led by Treasury bills, up 3.7 % after a 4.2 % drop late last year. Meanwhile, inflows into equity and diversified mutual funds slowed from 38.6 % to 26.9 %, and bond-fund subscriptions cooled from 19 % to 10.5 %.
Market implications
Combined, the data suggest credit stress is broadening beyond pandemic-hit sectors into consumer and SME segments. Unless economic growth surprises to the upside—BAM last week lifted its 2026 GDP forecast to 4.1 %—provisioning costs could erode bank earnings, keeping pressure on sector valuations.