This paper examines the short-run transmission of monetary policy to bank credit granted to the non-financial corporate sector in Morocco, a bank-based emerging economy. Using monthly macro-financial data over the period of 2014–2024, the study estimates a reduced-form VAR model to analyze the dynamic interactions between the policy rate, bank credit, banks’ holdings of sovereign securities, credit risk indicators, and short-term market spreads. Impulse response functions and forecast error variance decompositions indicate that a one-standard-deviation monetary policy shock is associated with a small and short-lived response of non-financial corporations bank credit at a monthly horizon, accounting for only a limited share of its forecast error variance, while the same shock is more strongly reflected in market spreads and banks’ balance-sheet reallocations toward sovereign assets, alongside temporary movements in credit risk indicators. Overall, these results are consistent with a reduced-form transmission pattern in which monetary policy appears to affect bank credit primarily through indirect financial channels related to risk perception, portfolio reallocation, and balance-sheet management, rather than through immediate changes in aggregate credit volumes. This interpretation is conditional on the VAR specification and short-run horizon considered, and suggests an attenuation of the interest rate–credit channel in a bank-dominated emerging economy, rather than evidence of a structural breakdown of monetary transmission.

This paper examines the short-run transmission of monetary policy shocks to bank credit granted to the non-financial corporate sector in Morocco, a bank-based emerging economy. While conventional monetary theory emphasizes the interest rate channel, growing empirical evidence suggests that monetary transmission is increasingly conditioned by banks’ balance-sheet constraints and credit risk considerations. The central question addressed is whether policy-rate shocks translate into short-run credit expansion or are instead absorbed through alternative banking adjustment mechanisms. The empirical analysis relies on monthly macro-financial data over the period 2014–2024 and employs a reduced-form Vector Autoregressive (VAR) framework. Impulse response functions, forecast error variance decompositions, and Granger causality tests are used to assess the dy-namic interactions between the policy rate, non-financial corporate credit, banks’ sovereign asset holdings, and credit risk conditions.The results show that monetary policy shocks generate weak, short-lived, and economically negligible responses in non-financial corporate credit, with no evidence of sustained credit expansion following policy-rate changes. By contrast, monetary impulses are associated with systematic balance-sheet reallocation toward sovereign assets and with more pronounced, though transitory, movements in credit risk indicators. Variance decompositions further reveal that short-run credit dynamics are overwhelmingly driven by internal banking and risk-related factors, while monetary policy shocks explain only a marginal share of credit fluctuations. Overall, the findings indicate that short-run monetary transmission in Morocco operates predominantly through risk-sensitive balance-sheet adjustments rather than through direct quantity-based credit responses, thereby reframing the interpretation of weak credit reactions to monetary policy in bank-based emerging economies.

This chapter explores Moroccan taxpayers' perceptions of tax amnesties within a context marked by a heavy reliance on tax revenues and ongoing fiscal reforms. Based on documentary analysis and interviews with ten professionals working in taxation and in companies that have benefited from such measures, the study examines how tax amnesties influence voluntary compliance and trust in the tax administration. The findings reveal a mutually beneficial dynamic, in which amnesties serve both the interests of taxpayers and the tax authorities. The chapter also emphasizes the importance of combining incentives for compliant taxpayers with effective deterrents against non-compliant behavior to enhance the overall impact of such policies.