## 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](https://www.imf.org/en/publications/cr/issues/2022/08/25/west-african-economic-and-monetary-union-financial-sector-assessment-program-technical-note-522603)

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## Bibliographic details
- Published: August 25, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400217340.002

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### 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).*

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_Source: https://www.imf.org/en/publications/cr/issues/2022/08/25/west-african-economic-and-monetary-union-financial-sector-assessment-program-technical-note-522603_