Casablanca – Morocco’s banking sector closed 2025 on a steady growth path, with both lending and deposits recording solid increases, according to the latest data released by Bank Al-Maghrib (BAM). The figures show that total outstanding bank credit reached approximately $129.7 billion, reflecting an annual increase of 8%, while total deposits climbed to about $141 billion, up 7.5% compared with the previous year.

The expansion in credit confirms a sustained financing cycle throughout 2025, supported by investment activity, household demand, and increased operations within the financial sector. Although growth remained measured in certain segments, the overall trend points to a stable and resilient banking environment.

Credit growth driven by financial and investment activity

At the end of December 2025, outstanding bank credit stood at the equivalent of $129.7 billion. Lending to non-financial agents — including households and non-financial companies — totaled approximately $103.4 billion, marking a 4.7% year-on-year increase.

In contrast, credit extended to financial institutions grew at a much faster pace of 23.2%, reaching nearly $26.3 billion. This sharp rise reflects intensified financial sector activity and stronger intermediation dynamics within the banking system.

Within the non-financial segment, private companies accounted for around $48.1 billion in outstanding bank loans, up 3% from a year earlier. This growth was primarily supported by a significant 13.9% rise in investment loans, indicating renewed capital expenditure and productive investment across key sectors of the economy.

Loans for real estate development also increased by 5.6%, contributing to overall credit expansion. However, short-term cash facilities for companies declined by 4.1%, suggesting either lower working capital needs or a more selective approach by banks toward short-term liquidity financing.

Public non-financial enterprises experienced a 3.7% decline in outstanding credit over the same period, pointing to adjustments in their financing structure or greater reliance on alternative funding sources.

Household borrowing shows moderate increase

Household lending continued to grow at a steady pace in 2025. Total credit to households reached approximately $40.8 billion, reflecting an annual increase of 3.6%.

This rise was largely driven by housing and consumer loans. Home financing expanded by 3.3%, while consumer credit rose by 5%, signaling sustained domestic demand and stable household borrowing activity. The figures indicate that families continued to rely on bank financing for residential purchases and consumption, even as overall growth remained moderate.

Participatory housing finance, particularly through real estate-based Murabaha contracts, posted strong growth. Outstanding participatory home financing climbed by 19.3% year-on-year to approximately $3.1 billion, compared with about $2.6 billion a year earlier. This trend highlights the increasing role of alternative banking products within Morocco’s financial landscape.

Lending conditions remain stable

Throughout 2025, lending standards remained broadly stable. During the third quarter, banks reported unchanged criteria for short-term cash loans, while standards tightened slightly for investment and real estate development financing.

By company size, lending conditions were reported as stable for both large enterprises and very small, small, and medium-sized businesses. Demand for credit increased across most economic categories between July and September, except for a slight decline in real estate development. Smaller companies, in particular, submitted more loan applications, reflecting ongoing financing needs.

In the final quarter of the year, most industrial firms surveyed described access to bank financing as “normal.” Borrowing costs remained largely unchanged, indicating a stable interest rate environment and predictable funding conditions.

Deposits strengthen liquidity

Parallel to the expansion in credit, bank deposits also recorded solid growth. Total deposits reached approximately $141 billion at the end of 2025, up 7.5% year-on-year. This rise strengthened liquidity within the banking system and reinforced banks’ funding capacity.

Households held around $100.9 billion in deposits, an increase of 5.9% compared with 2024. This total includes approximately $23 billion deposited by Moroccans living abroad, underlining the continued importance of diaspora savings in supporting domestic financial stability.

Private non-financial companies deposited about $26.9 billion, representing a 10% annual increase. The faster growth in corporate deposits suggests that businesses improved their cash positions during the year, contributing to stronger balance sheets and higher overall liquidity.

A balanced banking expansion

The combined growth of credit and deposits in 2025 reflects a balanced evolution of Morocco’s banking sector. Financing expanded in support of investment and household demand, while deposit accumulation provided a stable and expanding funding base.

Although certain segments, such as public enterprise lending and short-term corporate facilities, experienced slower activity, the overall system demonstrated resilience and prudent risk management. Investment loans, housing finance, participatory banking products, and corporate liquidity all contributed to the year’s performance.

With outstanding credit nearing $130 billion and deposits exceeding $140 billion, Morocco’s banking sector entered 2026 on firm footing, supported by stable financing conditions, sustained savings growth, and a controlled but steady expansion of lending activity.