Morocco rejects Fitch Rating report on banking sector

Morocco’s central bank has efficient and effective regulatory control of the banking sector contrary to what Fitch rating claimed in a recent report, said head of the bank Abdellatif Jouahri.

The central bank governor, who was speaking to reporters, said Fitch was wrong in its conclusions that run contrary to what other international rating agencies and financial institutions such as IMF and the World Bank say about the solid financial structures of the Moroccan banking sector.

Jouahri added that he sent a letter to Fitch responding one by one to all its false claims.

Fitch had warned against the risks it claimed were looming on Moroccan banks notably low capitalization, weak asset quality and a higher ratio of impaired loans.

The Moroccan banking sector is concentrated, with the seven largest banks accounting for approximately 90% of total sector deposits.

Attijariwafa bank and Banque Populaire BCP are dominant lenders, each controlling market shares of about 25% while foreign-owned banks represent around 20% of the market.