Stress tests

Bank Al-Maghrib regularly conducts three major categories of stress tests to evaluate the resilience of the banking system in the face of extreme shocks:

  1 - Sensitivity stress tests measure the impact of a shock of credit, liquidity, market, interest rate or exchange, on the balance sheet equilibrium and/or the solvency of financial institutions.

  2 - Interbank contagion stress tests measure therisk of spread of a bank’s failure to other banks through their bilateral interactions, and to the unsecured and collateralized interbank markets.

  3 - Macro-stress tests assessthe capacity of the banking system to withstand shocks stemming from the macro-economic environment.

These stress tests are based on analysis of the national and international macroeconomic environment. The results are used to implement the measures necessary to reduce the impact of shocks in case they materialize.