Credit Market in Morocco: A Disequilibrium Approach

March 1, 2009

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Format: Chicago

Nada Oulidi, and Laurence Allain. Credit Market in Morocco: A Disequilibrium Approach, (USA: International Monetary Fund, 2009) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In this paper we use a disequilibrium framework common in the “credit crunch” literature, first to examine whether the slow credit growth in Morocco during the rapid expansion of liquidity in the first half of the decade can be attributed to credit rationing, and second to investigate the role of asset price increases in the recent acceleration of credit growth. Our results do not support the credit rationing hypothesis in the first half of the decade. They do however, show that the recent increase in real estate prices stimulated credit supply and demand, with a stronger effect on the latter.

Subject: Asset prices, Bank credit, Credit, Financial markets, Money, Prices, Real estate prices, Real interest rates, Stock markets

Keywords: Asset prices, Bank credit, Bank equity price, Credit, Credit crunch, Credit demand, Credit growth, Credit supply, East Asia, Equity capital, Lending capacity, Lending process, Noncollateralized bank lending, Price variable, Proxy asset price, Real estate prices, Real interest rate, Risk management practice, Stock market index, Stock market price, Stock markets, Treasury bill rate, WP

Publication Details

Pages:

20
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/053
Stock No:

WPIEA2009053
ISBN:

9781451872019
ISSN:

1018-5941

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