West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note-Stress Tests, Credit Concentration, and Interest Rate Risks
IMF Staff Country Reports, August 25, 2022
Source details
- Canonical URL
- West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note-Stress Tests, Credit Concentration, and Interest Rate Risks
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Bibliographic details
- Published: August 25, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400217340.002
Scope and purpose
- Presents the stress tests on credit, interest rate, and concentration risk conducted by the WAEMU FSAP.
- Notes that stress tests on contagion and liquidity risks are addressed separately.
- States the role of stress tests: detecting financial sector vulnerabilities, setting up targeted banking sector monitoring, imposing preventive measures, and informing public decision-makers of macrofinancial risks and costs.
Subjects and keywords
- Subjects: Bank soundness, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, International organization, Market risk, Monetary policy, Nonperforming loans, Stress testing
- Keywords: bank cluster, bank portfolio, Bank soundness, BCEAO's bank, concentration risk, Financial Sector Assessment Program, IMF-World Bank Financial Sector Assessment Program, Market risk, Nonperforming loans, risk modeling, Stress testing, West Africa
Actions and follow-up noted by the unit
- Contagion and liquidity risk stress testing are treated in separate documentation (no details provided here).
- Intended uses of the stress-test outputs include:
- Detecting vulnerabilities in the financial sector.
- Setting up targeted banking sector monitoring.
- Imposing preventive measures.
- Informing public decision-makers of macrofinancial risks and costs.
International Monetary Fund. African Dept. "West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note-Stress Tests, Credit Concentration, and Interest Rate Risks", IMF Staff Country Reports 2022, 279 (2022).
Content in this bundle
- 1wauea2022004