The determinants of Moroccan banks resilience

Résumé

In an environment characterized by the succession of banking crises, the resilience of financial
institutions has become essential. A bank is considered resilient if it is able to prevent, absorb and
recover from a financial shock. In this context, the financial authorities have introduced the Bale
III agreement, which aims to improve the capacity of banks to face possible crises and ensure their
sustainability. This study aims to identify the determinants of the banking resilience. Through our
empirical study we aim to identify the determinants of bank resilience related to equity and
liquidity in addition to other variables such as profitability, rentability, risk and bank size. We used
a panel of 6 Moroccan banks over a 16-years period from 2005 to 2020.To assess the resilience of
the banks, we used a panel statistical analysis to evaluate the impact of 14 different variables on
the response variable. Resilience has been presented in our study by Merton's distance to default
formula. the results show on one hand, that equity, liquidity and rentability are the determinants
of banking resilience and on the other hand, they show that size, profitability and risk does not
determine resilience in the Moroccan banking sector