Bank Al-Maghrib Launches Reforms to Boost Credit via Non-Performing Loan Market

Bank Al-Maghrib (BAM), in coordination with its partners, is working to accelerate the establishment of a secondary market for non-performing loans in order to free up the financing capacities of banks and revive the dynamics of credit, announced the Wali of the Central Bank, Abdellatif Jouahri, on Tuesday in Rabat.

“The rate of these claims in the Moroccan banking sector stands at 8.2% at the end of 2025, for an outstanding amount exceeding 100 billion dirhams (MMDH), a level considered high compared to international standards,” Jouahri indicated, during a national seminar organized jointly with the Ministry of Justice on the efficiency of the legal framework relating to the judicial recovery of non-performing debts.

He stressed that this level, maintained in Bank Al-Maghrib’s balance sheets, mobilizes considerable resources and limits the ability of institutions to direct more financing towards the national economy.

Boosting Credit Through Bank Al-Maghrib’s Non-Performing Loan Initiative

To address this, Bank Al-Maghrib is working, in coordination with its partners, to launch a secondary market for non-performing loans, which would allow banks to sell these assets and improve their liquidity.

Bank Al-Maghrib’s project revolves around a draft law governing the transfer of these receivables, developed with the technical support of the International Finance Corporation (IFC), the Wali announced, noting that this text aims to simplify the transfer procedures, while guaranteeing the automatic transfer of related guarantees as well as an adequate level of protection of debtors’ rights, particularly with regard to personal data.

Jouahri also mentioned the revision, in December 2025, of the circular relating to the classification of bank claims, with the introduction of a new category of sensitive claims, the strengthening of restructuring conditions and the broadening of the definition of default.

On the procedural front, he highlighted the potential of digital technology, mentioning in particular the creation of online auction platforms, the development of tools to help calculate bank interest for judges and experts, as well as the generalization of the payment of court fees within the banking sector, in coordination with the Ministry of Justice.

Furthermore, he welcomed the adoption by banking institutions, under the aegis of Bank Al-Maghrib, of a code of ethics relating to transparency in debt recovery before any legal recourse, enshrining the principles of responsibility and respect for customer rights, with priority given to amicable solutions.

Bank Al-Maghrib Seminar Highlights Judicial and Legislative Measures to Enhance Debt Recovery

For his part, the Secretary General of the Supreme Council of the Judiciary, Mounir Mountassir Bilah, reviewed the main difficulties observed by the commercial courts, including the establishment of the amount of the debt, the probative force of account statements, the methods of calculating interest and commissions, real and personal guarantees, as well as the assignment of non-performing receivables to third parties.

He called for an integrated vision based on four pillars: the valorization of the case law acquired by commercial courts, the precise diagnosis of legal and procedural gaps, the formulation of targeted legislative interventions, and the strengthening of judicial specialization and the exchange of knowledge between the justice system and the banking sector.

Mountassir Bilah also welcomed the draft law on the direct assignment of non-performing loans as an expected legislative response, provided that it is carried out transparently and with respect for consumer rights and personal data.

Bank Al-Maghrib’s seminar brought together representatives from the Ministry of Justice, the Presidency of the Public Prosecutor’s Office, banking institutions such as Bank Al-Maghrib, and legal professionals, with the aim of formulating concrete recommendations to strengthen the effectiveness of the legal framework for the recovery of outstanding debts.

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