(Ecofin Agency) - The value of the 6 Moroccan commercial banks listed on the Casablanca Stock Exchange is down, two days after the Central Bank (Bank Al-Maghrib) ordered the suspension of dividend distribution.
“It is important for credit institutions to maintain sufficient capital to cope with the effects of the crisis and thus preserve their ability to provide funding in these exceptional circumstances,” the Central Bank explained.
On May 13, the stock market value of banks fell by MAD4.27 billion, or about $434.3 million. Since the beginning of the year, banks have lost stock market valuations of nearly $7.17 billion. As part of its response to the coronavirus, the Moroccan central bank has introduced several easing conditions, but its current position shows that it does not wish to distribute liquidity free of charge in the banking sector.
Banks will have to make efforts. They have always been characterized by generous dividend strategies, especially those whose capital is majority-owned by Moroccan shareholders.