Casablanca – In a remarkable display of financial stability and growth, Morocco’s banking sector has experienced record-breaking deposit levels in 2024, according to the latest data from Bank Al-Maghrib (BAM). As of November 2024, the total deposits in Moroccan banks reached a staggering $126.6 billion, marking a significant 7.3% increase from the previous year.

The surge in deposits is largely driven by households, which represent 74% of the total. Household deposits have risen by 6.3% year-on-year, totaling $93.3 billion, a historic high. This growth is indicative of increased savings and greater financial confidence among Moroccan families, reflecting the country’s overall economic resilience. Notably, deposits from Moroccan residents abroad (MRE) have also seen a substantial increase, reaching $21.5 billion by the end of November 2024, further contributing to the impressive totals.

In addition to household savings, the business sector has also seen accelerated growth. Private, non-financial companies have recorded a 12.9% increase in their bank deposits, amounting to $22.4 billion by November 2024. This sharp rise in business deposits signals a strengthening of Morocco’s private sector, which appears to be capitalizing on favorable economic conditions and improved access to banking services.

The banking sector remains heavily concentrated, with the three largest banks controlling 63.4% of all deposits in the country, a trend that has remained consistent over the past few years. This concentration of deposits underlines the dominance of key banking institutions, which continue to hold the majority of financial resources in Morocco.

At the same time, the total credit portfolio in the banking sector has reached $115.7 billion, reflecting a 4.1% increase compared to the previous year. The distribution of credit is divided mainly between households and private businesses. Loans to households have reached $40.2 billion, marking a modest 0.8% annual increase, while loans to private companies have surged to $45.4 billion, reflecting a 1.8% growth in demand for business financing.

In terms of interest rates, there have been some noteworthy adjustments. Interest rates on six-month deposits have decreased by 33 basis points, while 12-month deposit rates have risen by 15 basis points. As of November 2024, the rate on six-month deposits stood at 2.35%, while the 12-month deposit rate rose to 2.74%. This shift in interest rates indicates a subtle adjustment by banks to attract more deposits while maintaining profitability.

Looking ahead to the first half of 2025, the minimum interest rate on savings accounts has been set at 2.21%, reflecting a decrease of 27 basis points compared to the previous period. This rate cut is part of a broader strategy by Bank Al-Maghrib to stimulate further savings in a period marked by changing economic conditions.

The continued growth in bank deposits, along with the strong performance of the Moroccan banking sector, highlights the resilience of the country’s financial system in the face of global economic challenges. With significant increases in both household and business deposits, Morocco’s banking sector is well-positioned to drive future economic growth. As the country enters 2025, this solid financial foundation offers a strong platform to tackle emerging challenges and seize new opportunities in the evolving financial landscape.