Overview of Money Supply Growth
Bank Al-Maghrib has announced an 8.3% year-on-year increase in the money supply for November, attributed to several key factors. Notably, net claims by deposit institutions on the central government rose significantly to 6.3%, up from a mere 0.3% in the previous period.
Additionally, bank credit extended to the non-financial sector experienced a notable uptick, climbing to 4.2% from 3.6%. However, the growth rate of official reserve assets decelerated, dropping from 19.6% to 17.4%.
Components of M3 Monetary Aggregate
The annual growth of the M3 monetary aggregate reflects a marked acceleration in the expansion of currency in circulation, which increased to 13.1% from 11.7%. Furthermore, demand deposits with banks rose from 10.2% to 11.2%, while holdings of monetary mutual fund shares surged from 8.5% to 17.6%.
Conversely, the growth of savings accounts stagnated at 1.9%, and time deposits saw a decline of 4%, following a 1.4% increase in October.
Bank Credit Trends in the Non-Financial Sector
The evolution of bank credit to the non-financial sector indicates a reduction in the decline of liquidity facilities, which decreased from 4.8% to 2.8%. Additionally, consumer loans accelerated from 4.5% to 4.7%, while growth in equipment loans slowed slightly from 16.4% to 16.2%, and real estate loans decreased from 3.2% to 3%.
Institutional Sector Developments
Examining the monetary assets by institutional sector, household monetary assets grew by 6.7%, up from 6.4%. This increase is primarily due to a rise in their holdings of monetary mutual fund shares, alongside a slowdown in the growth of demand deposits and a stagnation in the decline of time deposits.
In contrast, the monetary assets of private non-financial corporations increased by 13.2%, compared to 11% previously, reflecting growth in their demand deposits and holdings of monetary mutual fund shares, as well as a reduction in the decline of their time deposits.
Increase in Non-Performing Loans
Regarding non-performing loans, there was a rise of 5.8% following a 3.7% increase in October 2025. The ratio of non-performing loans to total credit stood at 8.7%, slightly up from 8.6%.
