Financial Sector Assessment Program (FSAP)
Last updated: September 24, 2014
The Financial Sector Assessment Program (FSAP), established in 1999, is a comprehensive and in-depth assessment of a country’s financial sector. FSAPs analyze the resilience of the financial sector, the quality of the regulatory and supervisory framework, and the capacity to manage and resolve financial crises. Based on its findings, FSAPs produce recommendations of a micro- and macro-prudential nature, tailored to country-specific circumstances.
The FSAP is a key instrument of the Fund’s surveillance and provides input to the Article IV consultation. In jurisdictions with financial sectors deemed by the Fund to be systemically important, financial stability assessments under the FSAP are a mandatory part of Article IV surveillance, and are supposed to take place every five years; for all other jurisdictions, participation in the program is voluntary. In developing and emerging market countries, FSAPs are conducted jointly with the World Bank. In these countries, FSAP assessments include two components: a financial stability assessment, which is the responsibility of the Fund, and a financial development assessment, which is the responsibility of the World Bank.
At the end of each FSAP mission, teams leave a detailed and comprehensive Aide Memoire with national authorities, which is confidential. FSAPs conclude with the preparation of a Financial System Stability Assessment (FSSA), which focuses on issues of relevance to IMF surveillance and is discussed at the IMF Executive Board together with the country’s Article IV report. Publication of FSSAs is not mandatory. In addition to the main document (listed below if published), individual country’s FSAPs may bring forward additional supporting documents.