IMF Staff Country Reports

Maldives: Financial Sector Assessment Program-Technical Note on Bank Stress Testing and Climate Risk Analysis

Publication Date:

January 19, 2024

Electronic Access:

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Summary:

A systemic vulnerability analysis and stress tests were conducted as part of the Maldives FSAP. The vulnerability analysis and stress tests were based on quarterly aggregate balance sheet supervisory data for the eight banks in Maldives as of December 2022. Identified vulnerabilities were subjected to hypothetical extreme but plausible scenarios that were informed by the Risk Assessment Matrix. Risks analyzed were credit risk, liquidity risk and market risk. Credit risks materialized as non-performing loans and pressure on pre-provision income, liquidity risks as deposit outflows, and market risks as changes in interest and exchange rates.

Series:

Country Report No. 2024/019

Subject:

Commercial banks Currencies Financial institutions Financial sector policy and analysis International organization Loans Monetary policy Money Nonperforming loans Stress testing

Frequency:

regular