Factors Influencing the Regulation of Credit Risks by Moroccan Financial Organisations

Author(s)

Alisha Salsabil Amin , Naznin Sultana Chowdhury , Md. Tahsin Amin , Kabir Md Ahsan , Mohammad Saiyedul Islam ,

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Volume 2 - December 2020 (12)

Abstract

This report is intended to examine the factors affecting the management of credit risk in Morocco's banking sector since the 2008 financial crisis. The banking sector's reliance is on money credit management and other financial institutions are now focusing on credit risk along with the banking sector. The study used data from 2015 to 2020 and used multiple regression analysis tests to classify the effects of credit risk influenced by the cost-to-income ratio and capital ratio, liquid assets, ratio of net loans to total assets, for the 45 Moroccan banks. Consequently, this report aims to judge the power of traditional banks' liquidity risk factors. The findings of the analysis are predictable ordinary knowledge in this field and would also be useful to the grand bankers who would be enthusiastic about dramatically protecting the country's prevalent consistency.

Keywords

Credit risk management, Cost to Income Ratio, Total Capital Ratio, Net Loans to Total Asset Ratio, PDMRA1

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