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Credit Market in Morocco: A Disequilibrium Approach

Author

Listed:
  • Nada Oulidi
  • Laurence Allain
Abstract
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.

Suggested Citation

  • Nada Oulidi & Laurence Allain, 2009. "Credit Market in Morocco: A Disequilibrium Approach," IMF Working Papers 2009/053, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/053
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    References listed on IDEAS

    as
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    Cited by:

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    2. Holmberg, Ulf, 2012. "Error Corrected Disequilibrium," Umeå Economic Studies 837, Umeå University, Department of Economics.
    3. Nikolai Lazarov, 2022. "Evaluation of the factors influencing household lending in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 221-238.
    4. Paolo Del Giovane & Andrea Nobili & Federico M. Signoretti, 2017. "Assessing the Sources of Credit Supply Tightening: Was the Sovereign Debt Crisis Different from Lehman?," International Journal of Central Banking, International Journal of Central Banking, vol. 13(2), pages 197-234, June.
    5. Sebastian Auguste & Ricardo N. Bebczuk & Gabriel Sanchez, 2013. "Firm Size and Credit in Argentina," Research Department Publications IDB-WP-396, Inter-American Development Bank, Research Department.
    6. Mirna Dumičić & Igor Ljubaj, 2017. "Delayed Credit Recovery in Croatia:Supply or Demand Driven?," Working Papers 45, The Croatian National Bank, Croatia.
    7. Allen, Franklin & Otchere, Isaac & Senbet, Lemma W., 2010. "African Financial Systems: A Review," Working Papers 10-11, University of Pennsylvania, Wharton School, Weiss Center.
    8. Khemraj, Tarron & Primus, Keyra, 2013. "Testing for the Credit Crunch in Trinidad and Tobago Using an Alternative Method," MPRA Paper 47372, University Library of Munich, Germany.
    9. Tamini, Arnaud & Petey, Joël, 2021. "Hoarding of reserves in the banking industry: Explaining the African paradox," The Quarterly Review of Economics and Finance, Elsevier, vol. 81(C), pages 214-225.

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