Bank Al-Maghrib: Money Supply Slows to +7.8% in September

The deceleration in the money supply is mainly linked to a slowdown in bank credit growth to the non-financial sector, which fell to 3%, and net claims on the Central Administration, which decreased to 1.4%, according to Bank Al-Maghrib's recent monetary statistics bulletin. In contrast, official reserve assets (ORA) saw their growth rate accelerate to 14.1%, up from 13.1%. The annual slowdown in M3 growth is primarily reflected in the reduced increase in sight deposits at banks, which stood at 10.1%. There was also a decline in term accounts by 1.1%, while the growth of currency in circulation accelerated to 9.8%, along with a 24.8% increase in holdings of money market mutual fund shares by economic agents. By institutional sector, the evolution of M3 mainly reflects the deceleration in the monetary assets of private non-financial corporations, which grew by 10%. This is accompanied by a slowdown in the growth of their sight deposits from 16.2% to 10.9% and a decrease in their holdings of money market mutual fund shares from 30.5% to 27.9%. Additionally, the growth of monetary assets for households has nearly stagnated at 6.6%, particularly in sight deposits at 9.2%, while their term accounts have seen an intensified decline to 3.8%, up from 3.4%. Bank credit to the non-financial sector recorded a growth of 3% in September 2025, down from 3.4% the previous month. The slowdown in the annual growth rate of bank credit to the non-financial sector is attributed to a deceleration in loans to non-financial corporations, which decreased from 1% to 0.8% for private companies and from 9.2% to 6.4% for public companies. The growth of loans to households remained almost stable at 2.9%. In terms of economic purpose, the deceleration in bank credit to the non-financial sector is due to an intensified decline in cash facilities to 6.6%, a slowdown in the growth of mortgage loans to 3.1%, and an acceleration in the growth of consumer credit to 4.2% and equipment loans to 16.5%. As for non-performing loans, they recorded an increase of 3.8%, with their ratio to total credit standing at 8.6%.