There is growing awareness globally about the potential impacts of climate change on financial stability. Climate-related financial risks can be broadly grouped into two categories: (i) climate physical risks, which are financial risks stemming from the gradual and abrupt impacts of climate change (primarily droughts and floods in the case of Morocco, as highlighted by the ongoing severe drought event and recent floods), and (ii) climate transition risks, which are financial risks that can result from the transition to a low-carbon economy, for example, due to changes in climate policy, technology, or market sentiment. The purpose of this report is to better understand the impact of these climate risks on Morocco's banking sector. This includes understanding the banking sector's exposure to sectors and regions that are vulnerable to climate physical and transition risks, as well as a quantification of climate impacts on banks' balance sheets under different scenarios. This report also takes stock of the Moroccan banking sector's current risk management practices and the supervisory response to climate-related financial risks.