...Moroccan Banks ¡ Predictably Stable; Slow Pace of Reform Continues Key Message on 2016: Key financial metrics reported by Morocco's leading banks tend to show little change year on year, and 2016 was no exception. The absence of surprises despite volatile economic growth (2016: +1.6%; 2015: +4.5%) is one of the banking sector's strengths. Nevertheless, minuscule changes in ratios (see charts) mask slow underlying improvements, driven by regulatory efforts to move towards international best practice standards. Moroccan banks report under IFRS and are being asked to provide greater disclosure, meet tougher liquidity standards (Basel 3) and prepare for increased currency volatility as the authorities move towards a more flexible exchange rate regime. Performance: Net interest margins held steady at an average 3.6% in 2016, which is relatively wide, even by developing market standards. French-owned SociTtT GTnTrale Marocaine de Banques and Banque Marocaine pour le Commerce et l'Industrie continued...
