Analysis of the Degree of Internationalization and Its Impact on Banking Performance: An Empirical Study of the Moroccan Banking Sector (International Journal of Accounting, Finance, Auditing, Management and Economics)

Summary

• The study examines Moroccan banks' internationalization and financial performance over 2010–2025, using annual consolidated data from Bank Al-Maghrib.p.2
• The international share of total assets rose from 14% in 2010 to 27% in 2022.p.8
• Consolidated net income (group share) rose from 10.5 MMDH in 2010 to a peak of 24.7 MMDH in 2025.p.12
• The short-term coefficient is negative and significant at the 5% level for internationalization of assets and deposits.p.14

Key insights

1. Internationalization is not an automatic lever of performance; its contribution depends on banks' organizational resources, governance and risk control.p.17
2. All series are non-stationary in levels and become stationary in first differences.p.13
3. The final model is estimated by OLS in first differences over 2011–2025 (T=15 observations) because no long-run relationship was found.p.14
4. For assets and deposits the effect stays significant at 5% in 10 to 13 of the 13 leave-one-year-out re-estimations.p.15
5. The effect is largely identified by the years 2023–2025, when asset internationalization falls from 27% to 23–24%.p.15
6. Results for loans depend strongly on the estimation sample.p.15
7. The three internationalization indicators rise until 2022 and decline moderately over 2023–2025, a period of strong domestic profits.p.12