Corresponding Author Affiliation*: Ibn Tofaïl University, Morocco

Abstract:

The Moroccan banking sector is one of the most developed sectors in Africa. It is a driving force in the development of the country’s economy and prosperity. The latter has become in a short period a modern and efficient growth-creating sector. Indeed, Morocco is one of the top five banking markets in Africa, with South Africa, Nigeria, Egypt and Angola accounting for 68% of the total revenues of the sector in Africa. Continent wide and their share of revenue growth in 2017 is 60%. This shows that the African banking market is fragmented, according to the report that compares it to the situation in other areas of the world, such as North America, Latin America, the Middle East and emerging Asia, where the top five regions, at the level of these zones, represent more than 90% of the sector’s revenues. This paper attempts to explore the relationship between banking sector as proxy to financial development and economic growth in Morocco, and transmission channel between these two variables. Researcher used annually data from 1997 to 2017 in this study to examine the impact of credit on economic growth. The study found found that banking sector induce economic growth.

Keywords: Economic growth, banking economy, banking, banking market.