IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05060821.html
   My bibliography  Save this paper

The Effect of Non-Performing Loans on Credit Availability: Insight from the Moroccan Banking System

Author

Listed:
  • Zakaria Savon

    (Faculty of Legal, Economic and Social Sciences- Souissi Mohamed V University of Rabat, Morocco)

Abstract

In recent years, Morocco has witnessed a notable and troubling increase in non-performing loans (NPLs). Data from Bank Al-Maghrib, the central bank of Morocco, reveals that nonperforming loans accounted for over 8% of the total credit volume in 2022.These loans present significant challenges, not only for the resilience of the banking sector but also because they can result in tighter credit conditions, making it increasingly difficult for businesses and consumers to obtain financing. This study conducts a comprehensive analysis of the impact of non-performing loans on credit supply within the Moroccan banking system, covering the period from the first quarter of 2009 to the fourth quarter of 2022. Findings from the ARDL model indicate that the rate of non-performing loans substantially impedes credit availability, both in the short term and the long term. This underscores the critical relationship between financial stability and economic stability.

Suggested Citation

  • Zakaria Savon, 2025. "The Effect of Non-Performing Loans on Credit Availability: Insight from the Moroccan Banking System," Post-Print hal-05060821, HAL.
    • Handle: RePEc:hal:journl:hal-05060821
    Note: View the original document on HAL open archive server: https://hal.science/hal-05060821v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05060821v1/document
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05060821. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.