Analysis of the determinants of credit risk in microfinance institutions in Morocco: A Panel Data Approach.

Résumé

Microfinance plays a crucial role in Morocco's socio-economic development, but MFIs face specific risks, particularly credit risk, which can impact their performance.

This paper focuses on the analysis of the determinants of credit risk within microfinance institutions in Morocco, over a period from 2012 to 2021. Using financial and non-financial data, the empirical study reveals the significant impact of macroeconomic variables such as GDP growth rate, inflation, and governance index, as well as internal factors such as return on equity (ROE), on credit risk. In addition, the analysis highlights the essential role of solidarity loans and micro-insurance in mitigating this risk and improving the performance of Moroccan MFIs. These results can serve as a basis for MFIs and regulators to improve their credit risk management and strengthen the microfinance sector in Morocco.