Stress Testing in Sub-Saharan Africa: Practices, Communications, and Capacity Development

ByMindaugas Leika, Hector Perez-Saiz, Olga Ilinichna Stankova, Torsten Wezel

May 11, 2020

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The paper finds that supervisory stress tests are conducted in more than half of sub-Saharan African countries, particularly in western and southern Africa, and that the number of individual stress tests has grown exponentially since the early 2010s. By contrast, few central banks publish assessments of macro-financial linkages; the focus leans more toward discussing trends and weaknesses within the financial sector than on outside risks that may negatively affect its performance.

Subject: Banking, Commercial banks, Communications in revenue administration, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Revenue administration, Stress testing

Keywords: Africa, asset concentration risk, bank, bank supervisor, banking risk, banking sector risk, Commercial banks, Communications in revenue administration, concentration risk, Credit risk, DP, DPPP, financial risk, Financial sector stability, Global, IMF TA, interest rate, liquidity risk, macro-financial risk analysis, macro-financial risk assessment, market, market risk, process, risk, risk analysis, risk driver, risk weight, stress test result, Stress testing, Sub-Saharan Africa

Pages:
58
Volume:
2020
DOI:
https://doi.org/10.5089/9781513532912.087
Issue:
007
Series:
Departmental Paper No. 2020/007
Stock No:
STSSAEA
ISBN:
9781513532912
ISSN:
2616-5333

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