Amid a challenging financial ecosystem, global credit ratings agency Moody’s has upgraded its outlook for banks in Morocco from negative to stable.
The assessment indicates continued efforts of the Moroccan government to support the banking sector.
“Islamic banking has made relatively little headway in Morocco so far, despite the country’s large Muslim population,” Moody’s observed in its report.
Even though Muslims make up over 90 percent of the country’s total population, the Islamic banking sector accounted for only 1.4 percent of the aggregate banking assets by the end of 2021.
Nevertheless, “Moroccan banks’ capital will remain stable but modest compared with their emerging market and African peers,” according to the report.
The agency maintained a stable outlook in the banking sectors of Nigeria, Egypt, Kenya, and the West African Economic and Monetary Union. South Africa’s banking outlook was also upgraded from negative.
Global instability caused by climate threats, pandemics, and more recently the Ukraine war have left Africa’s banking environment fragile. —AN
