Permanent control focus on monitoring and analyzing the data transmitted periodically by credit institutions, including their financial position, prudential ratios and the individual and consolidated financial statements. This process is accompanied by an annual review of internal control reports, management reports and auditors’ reports submitted by credit institutions.
Permanent control is also based on the results of meetings held regularly with managers of credit institutions about their activities and their tools for risk measurement and management.
When Bank Al-Maghrib notices, within its permanent control, deficiencies or breaches of the legal and regulatory provisions applicable to credit institutions, it undertakes corrective actions against these institutions and ensures their implementation. Sanctions may also be imposed in the cases provided for by the banking regulation.
Permanent control bodies, supported by the findings of on-site missions, carry out the rating of institutions based on the Credit Institutions rating support system (SANEC) set by Bank Al-Maghrib in 2006. This system aims to:
- Present in a concise way the financial and prudential position of credit institutions
- lay down a diagnosis of the quality of their administration and management
- highlight their risk profile
- constitute a warning mechanism intended to increase the preventive nature of prudential supervision
The rating of an institution is performed on a scale of ratings ranging from 1, the most favorable, to 5, the least favorable.
The rating process is based on both a quantitative and qualitative analysis of risk, and is centered on a dedicated IT tool.
It provides an analysis and assessment tool for a risk-based supervision. It is also considered as an in-house management tool to measure the intensity of the permanent control, decide about the on-site control missions and to initiate the corrective actions. When the rating reaches a predefined threshold, appropriate measures are taken in accordance with the legal provisions in force.