The impact of COVID-19 on the financial performance of Moroccan banks: a post-covid analysis

Abstract

The health crisis in Morocco has triggered a palpable macroeconomic and microeconomic shock, which deeply affected all sectors of the national economy. Despite playing a crucial role as intermediaries for the transmission of monetary and fiscal policies to manage economic crises, banks were not spared the devastating effects of the crisis. Banks faced significant financial and operational pressures attributable to various factors such as market volatility, increased credit risk, rise in doubtful debts, liquidity strains, and a significant decline in financial results. This research aimed to specifically examine the repercussions of the pandemic on the profitability and financial performance of banks. To achieve this, a descriptive analysis methodology was adopted while focusing on two key indicators: Return on Assets (ROA) and Return on Equity (ROE). These indicators could potentially assess the profitability of banks and provide a meaningful overview of their financial performance before, during, and after the crisis to better understand the specific effects of the pandemic on the Moroccan banking sector.