Regulatory Alerts2013-12-31
Circular No. 05/SCO/2013, of December 31 - Stress Tests
The Bank of Mozambique issued Circular No. 05/SCO/2013 to mandate that all supervised credit institutions implement comprehensive stress testing frameworks to assess their resilience against exceptional but plausible adverse financial shocks. The regulation requires institutions to conduct semi-annual sensitivity analyses and annual scenario analyses covering at least thirteen material risk types, while establishing strict governance, data quality, and corrective action protocols overseen by the governing body. Furthermore, it sets specific reporting deadlines and documentation standards, ensuring that stress test outcomes directly inform internal capital adequacy, liquidity planning, and risk mitigation strategies submitted to the central bank.