Bank-Specific and Macroeconomic Determinants of Non-Performing Loans: Empirical Evidence from Moroccan Banks

Moussaif Loubna, Ben Ali Oumjoud Soufiyane, Ahmanna Mostafa

This paper analyzes the bank-specific and macroeconomic determinants of non-performing loans (NPLs) in Moroccan banks using panel data from six listed institutions over the period 2013–2023. Panel regression results indicate that bank size has a positive and significant effect on NPLs, while loan loss provisions reduce credit risk, highlighting the role of prudent provisioning practices. Economic growth is associated with higher NPLs, suggesting riskier lending behavior during expansionary phases, whereas unemployment exerts a negative impact, reflecting more conservative credit policies under adverse labor market conditions. In contrast, bank profitability and inflation do not significantly influence NPL levels. These findings underscore the joint role of bank behavior and macroeconomic conditions in shaping credit risk and provide policy-relevant insights for banking supervision in emerging economies.