On-site inspection is a complementary phase of permanent control. It lies in carrying out targeted investigations with the aim of assessing both the management aspects of credit institutions which cannot be evaluated remotely, as well as the fairness of financial and prudential information. This process also allows for a deeper assessment of the governance and verification of the internal control and risk management mechanism.
On-site inspection is organized on the basis of a clear-defined annual program resulting from a structured approach whereby selected institutions and targeted risks are defined. Among the selection criteria, those used to assess the systemic importance of financial institution, risk ratings and periodicity requirements are the most decisive factors. The program may change during the year, in case the permanent control uncovers possible weaknesses within the institutions.
The on-site inspection missions may be of a general or thematic nature.
The general-nature missions cover all the activities of the monitored institutions. Thematic missions focus on a particular aspect of these activities and may cover several institutions at the same time.
At the end of each on-site inspection, a report is submitted to managers of the concerned institution, highlighting the areas of vulnerability identified and requiring them to inform Bank Al-Maghrib of the measures undertaken to rectify these deficiencies.