Morocco: Financial Sector Assessment Program: Technical Note-Stress Testing the Banking System

November 4, 2016

Preview Citation

Format: Chicago

Morocco: Financial Sector Assessment Program: Technical Note-Stress Testing the Banking System, (USA: International Monetary Fund, 2016) accessed December 22, 2024

Summary

This Technical Note discusses the key findings of the stress testing of the banking system in Morocco. The stress tests examined the resilience of the Moroccan banking system to solvency, liquidity, and contagion risks. The global liquidity stress tests revealed that most banks in the system would be exposed to liquidity risks in the event of large deposit withdrawals, under a more severe scenario than the Basel III Liquidity Coverage Ratio metrics, or depletion of unsecured wholesale funding. Banks were found to be less vulnerable to direct contagion risk through bilateral exposure. The contagion risk analysis revealed that the risks stemming from domestic interbank exposures are very limited.

Subject: Banking, Commercial banks, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Insurance companies, Nonperforming loans, Stress testing

Keywords: Balance sheet size, Banks in Morocco, Capital ratio, Central bank, Commercial banks, CR, Credit risk, Credit risk, Europe, Foreign currency, Global, Hurdle rate, Insurance companies, Interest income, ISCR, Market value, Moroccan bank, Nonperforming loans, NPL ratio, Parent bank, Real interest rate, Sensitivity analysis, Standby liquidity inflow, Stress test result, Stress testing

Publication Details

Pages:

65
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/329
Stock No:

1MAREA2016006
ISBN:

9781475545975
ISSN:

1934-7685

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