Household financial wealth amounted to 833 billion dirhams (billion dirhams) at the end of 2019, increasing by 5.3% after its deceleration observed a year earlier to 4.5% after 6.5% in 2017 . This development covers a resumption of the growth of bank deposits and a more important orientation of households towards investments in life insurance compared to investments in transferable securities, indicates Bank Al-Maghrib (BAM) in its report, published jointly with the Authority of Control of Insurance and Social Security (ACAPS) and the Moroccan Capital Market Authority (AMMC).
Overall, the structure of household financial assets remains virtually stable. Their deposits with banks represent 82.4%, while the share of their assets in the form of life insurance has increased significantly by 0.6 percentage point to 10.4%. The share of securities investments is 7.2%.
With regard to household deposits with banks, they recorded an increase of 4.3% in 2019 after 3.7% in 2018 and 6.0% in 2017, totaling MAD 686.3 billion. Residents hold a 73% share and their deposits grew by 5.2%, while those of Moroccans living abroad recorded only a very limited increase of 0.9%, settling in at nearly 185 billion dirhams.
Foreign currency deposits by resident individuals increased by 2.8%, after 0.6% in 2018; their share in the total deposits of resident individuals, however, remains limited to 1%, the report notes.
This development reflects an increase in both sight deposits from 4.9% to 414.4 billion dirhams, as savings accounts from 4.7% to 163.4 billion dirhams, notes the same source.
At the same time, term deposits, reaching nearly MAD 100 billion in 2019, increased from one year to the next by MAD 2 billion (2.4%). This positive increase is the first recorded after three consecutive years of decreases, during which the share in the total deposits fell to 14.6% against 18.9% in 2015. During this period, it has There has been a downward trend in interest rates remunerating term deposits.
Thus, the weighted average rates of 6-month and 1-year deposits were respectively 2.72% and 3.01% in 2019 against 2.77% and 3.09% in 2018 and 2.82% and 3, 12% in 2017, whereas they were at higher levels in the past (from 3.42% and 3.81% respectively ten years ago). Households are therefore moving more and more towards other types of investment, in particular life insurance.
Household financial wealth in the form of life insurance products, for its part, grew in 2019 by 12.4% after 7.9% a year earlier, the report said, explaining that this increase reflects the Increasingly growing interest from households in this type of investment, mainly linked to its tax advantages, more particularly for employees.
At the same time, household investments in securities reached nearly MAD 60 billion, up 7.4% in 2019 against 9.3% a year earlier. These investments are mainly composed of property titles with more than 92%, themselves made up of shares and UCITS securities, as well as private debt securities with a share of 7.4% in 2019.