## 1. Building Blocks of the FSSF ## Source details **Canonical URL:** [1. Building Blocks of the FSSF](https://www.imf.org/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2025-final-july-2025.pdf) ## Other formats - [Markdown version](/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2025-final-july-2025.pdf.md) - [Structured JSON version](/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2025-final-july-2025.pdf.json) --- ### Executive summary and scope - The Financial Sector Stability Fund (FSSF) is a thematic multi-donor fund supporting IMF programmatic capacity development (CD) on financial sector stability in low and lower-middle income countries (LLMICs) and fragile and conflict-affected states (FCS). - The FSSF comprises two modules: the Financial Reform Module (FRM) and the Financial Statistics Module (FSM). - Phase I concluded on December 31, 2024; Phase II began on May 1, 2024, with an overlap between May and December 2024 to facilitate transition. - The reporting period for FY2025 runs from May 1, 2024 through April 30, 2025. - FY2025 FSSF spending amounted to US$5.6 million, down from US$7.1 million in FY2024. - The Phase I unspent balance of US$660K (as of April 2025) is proposed to be transferred into the fund for Phase II. ### Program management, monitoring, and coordination - FSSF CD projects are country-tailored and use a strategic logical framework (logframe) aligned with the IMF’s results-based management (RBM) framework. - FRM management: IMF’s Monetary and Capital Markets Department (MCM). - FSM oversight: IMF’s Statistics Department (STA). - STA participated in all FSSR diagnostic missions during FY2025; all FSSR reports now include a chapter on financial sector statistics. - Governance: FSSF Steering Committee (SC) composed of donor and IMF representatives (with observers including the World Bank) meets annually and conducts a mid-year check to guide strategy and endorse work plans. ### FY2025 developments and outlook - Delivery: strong CD delivery with continued demand for new Financial Sector Stability Review (FSSR) diagnostics and traction on TA workplans; Phase I project completions shifted focus to final assessments and reduced overall spending. - FY2025 highlights: - Robust execution under active Phase II projects. - Decline in total spending to US$5.6 million due to Phase I closures and resident advisor terminations. - Delivery of five FSSR diagnostics in FY2025 (follow-up TA workplans scheduled to start in FY2026). ### Financial Reform Module (FRM) — key FY2025 activities and status - FSSR diagnostics completed in FY2025: Kenya, Madagascar, Papua New Guinea, Somalia, and Vanuatu. - Diagnostic initiated: Zambia. - Follow-up TA projects finalized as Phase I closed: Cambodia, Djibouti, Gambia, Guinea, Kosovo, Uzbekistan, and Zimbabwe. - Active TA projects as of end-April 2025: Burundi, Cabo Verde, the Democratic Republic of Congo, Eswatini, Lesotho, Nepal, Rwanda, Sierra Leone, and Zimbabwe. - Five additional projects expected to begin following recently completed FSSR diagnostics. - Multilateral CD delivered: Supervisory and Regulatory Online Course (SROC), Cyber Risk Supervision Online Course (CRSOC), and the eighth annual Cybersecurity Workshop. - Resident advisor placements during Phase I: Democratic Republic of Congo, Cambodia, Djibouti, the Gambia, Rwanda, Sierra Leone, Sri Lanka, and Uganda. - Advisors concluded assignments in Cambodia, Djibouti, Gambia, Sri Lanka, and Uganda. - As of end-April 2025, resident advisors remain in the Democratic Republic of Congo, Rwanda and Sierra Leone. ### Financial Statistics Module (FSM) — key FY2025 activities and status - FSM support focused on strengthening financial sector and balance sheet statistics via the Balance Sheet Approach (BSA) and the Financial Soundness Indicators (FSIs) sub-modules. - Program target progress: 63 percent of activities envisaged in the FY2025-FY2026 Q2 workplan have been implemented to date. - Most FSSF-eligible countries can now regularly compile a basic set of FSIs; focus shifting to compiling FSIs for non-banks. - BSA efforts prioritize development of primary statistics and improved methodologies and coverage for Monetary and Financial Statistics (MFS), Government Finance Statistics (GFS) and International Investment Position (IIP). - STA participation in all FSSR diagnostics complemented FRM work by assessing data quality and compilation capacity. ### Responses to the 2023 Independent Mid-Term Evaluation of Phase I - Internal FSSR Handbook updated to provide additional guidance on diagnostic and follow-up TA elements. - Follow-up TA projects now begin with an assessment of authorities’ absorption capacity and focus on a smaller number of priority workstreams to increase traction. - Greater flexibility in transferring resources across follow-up TA projects implemented to increase execution efficiency. - STA aligned FSSF program-level logframes with IMF RBM logframes and developed a new monitoring tool, increasing the share of "rated outcomes" to 86 percent. - IMF coordination with the World Bank and other CD partners strengthened to ensure smooth and impactful follow-up TA delivery. - Deployment of resident advisors for new follow-up TA projects is being considered carefully. ### FY2025 budget and execution indicators (selected figures; in US$ thousands) - Reform Module: Current Budget as of April 2025 = 5,557; Expenses = 2,023; Remaining Budget = 3,534; Execution (%) = 36% - FSSR Diagnostics (5/1/2024–4/30/2029): Current Budget = 2,019; Expenses = 977; Remaining Budget = 1,042; Execution (%) = 48% - FSSR Follow-up TA projects: Current Budget = 3,538; Expenses = 1,046; Remaining Budget = 2,492; Execution (%) = 30% - Burundi (3/28/2025–4/28/2028): Current Budget = 373; Expenses = -; Remaining Budget = 373; Execution (%) = 0% - Cabo Verde (11/1/2024–4/29/2026): Current Budget = 227; Expenses = 73; Remaining Budget = 154; Execution (%) = 32% - Congo DR (6/1/2024–12/31/2026): Current Budget = 560; Expenses = 407; Remaining Budget = 298; Execution (%) = 58% - Eswatini (9/1/2024–12/30/2026): Current Budget = 485; Expenses = 124; Remaining Budget = 360; Execution (%) = 26% - Lesotho (10/31/2024–4/30/2026): Current Budget = 171; Expenses = 64; Remaining Budget = 107; Execution (%) = 38% - Nepal (9/1/2024–4/29/2027): Current Budget = 441; Expenses = 15; Remaining Budget = 426; Execution (%) = 3% - Rwanda (10/31/2024–6/30/2025): Current Budget = 527; Expenses = 173; Remaining Budget = 353; Execution (%) = 33% - Sierra Leone (12/31/2024–10/30/2025): Current Budget = 217; Expenses = 129; Remaining Budget = 88; Execution (%) = 60% - Zimbabwe (3/14/2025–8/31/2026): Current Budget = 394; Expenses = 60; Remaining Budget = 333; Execution (%) = 15% - Endorsed budget for follow-up TA projects = 1,497 (N/A execution) - Statistics Module (11/1/2024–4/30/2029): Current Budget = 848; Expenses = 462; Remaining Budget = 385; Execution (%) = 55% - Governance (4/30/2024–4/27/2029): Current Budget = 27; Expenses = -; Remaining Budget = 27; Execution (%) = 0% - Total (in US$ thousands): Current Budget = 6,432; Expenses = 2,486; Remaining Budget = 3,946; Execution (%) = 39% - Trust Fund Management Fee (of which): Current Budget = 421; Expenses = 163; Remaining Budget = 258 *Source: Financial Sector Stability Fund (FSSF) FY2025 report (May 1, 2024–April 30, 2025), IMF.* --- ### 9. The FSSF is the main trust fund for MCM’s CD activities on financial sector stability ### Funding and overall footprint (FY2025) - FSSF accounted for 12 percent of overall MCM external funding. - FSSF spending on MCM CD projects in FY2025 = US$4.6 million. - FRM activities financed by combination of Phase I and II funds reflecting May–December 2024 overlap. - IMF and World Bank delivered a joint presentation on Somalia FSSR to the FSSF Steering Committee in December 2024. - Five FSSR diagnostics completed in FY2025, bringing total completed FSSR diagnostics to 28. - FSSR diagnostic in Zambia: scoping mission completed in FY2025; main mission scheduled for early FY2026. ### Country-level diagnostics — main takeaways (diagnostics completed in FY2025) - Kenya: - Financial system: relatively large and complex; multi-agency sectoral setup coordinated through the Joint Financial Sector Regulators Forum. - Digital finance: notable early adopter; widespread use of mobile money technologies. - FSSR focus areas: (i) financial sector regulation and supervision; (ii) bank resolution, crisis management and safety nets; (iii) macroprudential regulation and supervision; (iv) stress testing; (v) digital finance; and (vi) financial sector statistics. - Key findings: CBK adapting supervisory framework but faces resource and expertise gaps; planned adoption of several reform packages aimed at implementing Basel II/III is crucial; safety net and crisis management need higher institutional profile and legal reforms; roles/responsibilities for macroprudential policy across regulators should be better defined; stress testing culture established but methodology and risk coverage need improvement; supervision of e-money industry should be upgraded; monitoring and risk assessment need better data quality, granularity, and coverage. - Follow-up: TA project discussed with authorities in late May 2025. - Madagascar: - Financial system: bank-dominated; one of the lowest levels of financial penetration in Sub-Saharan Africa. - FSSR focus areas: (i) financial sector supervision and regulation; (ii) stress testing; (iii) bank resolution, crisis management and safety nets; (iv) prudential supervision of electronic money enterprises, digital finance and financial inclusion; and (v) financial sector statistics. - Key findings: progress on 2016 FSAP recommendations; recommended further Basel II/III implementation and enhanced oversight of expanding electronic money activities; strengthen stress testing capacity to domestic specificities and integrate into systemic risk assessments; establish a resolution function and other key safety-net components. - Follow-up: TA project discussed with authorities in late May 2025. - Papua New Guinea: - Context: FCS with a relatively small financial sector dominated by banks, a small insurance sector, and limited financial inclusion. - FSSR focus areas: (i) financial regulation and supervision; (ii) systemic risk analysis and macroprudential policy framework; (iii) bank resolution, crisis management and safety nets; (iv) payment and settlement systems; and (v) financial sector statistics. - Key findings: advise continued upgrades to regulatory and supervisory frameworks for deposit-takers, superannuation funds, and insurance companies; improve systemic risk analysis and macroprudential policymaking; improve financial safety net including broadening resolution powers and enhancing emergency liquidity assistance; strengthen payments system policy and oversight; establish comprehensive prudential regulation for e-money providers. - Follow-up: TA project discussed and currently being finalized with the Bank of Papua New Guinea. - Somalia: - Context: FCS with a bank-dominated financial sector facing political and security challenges; diagnostic coincided with launch of new five-year CBS strategic plan focused on enhancing financial stability. - FSSR focus areas: (i) financial stability analysis; (ii) supervision and regulation; (iii) payment systems and mobile money oversight; and (iv) financial sector statistics. - Thematic priorities: legal framework, data quality and coverage, oversight framework, and staff capacity. - Key findings: priority to passage of laws including the Financial Institutions Law, National Payments Act, and the Central Bank Act to expand regulation perimeter and supervisory powers; need to develop regulations, guidelines, and supervisory manuals; banking sector data comprehensive but data from non-banking financial institutions including telecoms limited; lack of guidelines causes variance and unreliable reporting; supervision staff capacity needs enhancement. - Follow-up: TA project being finalized and will include training sessions on foundational financial stability and supervisory topics. - Vanuatu: - Financial system: banking system large relative to the economy with total assets amounting to roughly 1.5 times GDP; foreign-owned banks dominate. - FSSR focus areas: (i) financial regulation and supervision; (ii) systemic risk analysis and stress testing; (iii) bank resolution, crisis management and safety nets; and (iv) financial sector statistics. - Key findings: risks from high non-performing loans (NPLs), limited resolution tools, absence of a formal bank resolution regime and emergency liquidity facility; recommended strengthening RBV stress testing capacities, intensifying supervision, improving legal powers and enforcement tools, and enhancing supervision on asset quality for prudent loan classification and provisioning. - Follow-up: TA project to be discussed with RBV in FY2026. ### FSSR follow-up TA activities — expenses and project status - Overall expenses under FSSR follow-up TA projects in FY2025 = US$2.6 million. - Phase I concluded in December 2024; most Phase I projects concluded: Cambodia, Djibouti, Gambia, Guinea, Kosovo, Uzbekistan, and Zimbabwe. - Five follow-up TA projects continued from Phase I into Phase II: Cabo Verde, DRC, Lesotho, Rwanda, and Sierra Leone. - Four new projects started during FY2025 under Phase II: Burundi, Eswatini, Nepal, and a new follow-up project in Zimbabwe. - Selected country milestones (examples): - Burundi: January 2025 mission reviewed Emergency Liquidity assistance (ELA) framework; April 2025 training on organization of on-site inspections; funding to date from IMF own resources (IMF01); upcoming TA to be funded by FSSF after proposal finalization. - Cabo Verde: Resolution unit became operational on May 1st, 2025 (not yet fully staffed); March 2025 TA mission assisted operationalizing macroprudential policy framework. - DRC: Resident advisor supported establishment of Financial Stability Department in September 2024; good progress on Liquidity Coverage Ratio (LCR) implementation; April 2025 mission delivered insurance supervision capacity building. - Sierra Leone: Resident advisor extended until end-June 2025; BSL developed an ELA policy approved by BSL Board in September 2024; March 2025 on-site mission operationalized ELA governance and conducted an ELA simulation. - Zimbabwe: November 2024 mission on Basel III capital framework; new Phase II follow-up TA (1.5 years) approved; first mission under new project in March 2025. *Source: FSSF Annual Report FY2025.* --- ### 11. Multi-country CD activities complemented the bilateral country work under the FRM in FY2025 ### Supervisory and Regulatory Online Course (SROC) - Joint delivery with Financial Stability Institute (FSI) of the Bank for International Settlements (BIS). - Target audience: supervisors new to banking regulation and supervision, and experienced supervisors seeking to refresh knowledge. - Course components: FSI tutorials, IMF case-study modules, seven live webinars co-hosted by MCM and FSI. - Seventh edition: - Ran over seven months; concluded in March 2025. - 522 participants from 108 jurisdictions registered in FY2025. - Recorded completion rate = 50 percent. - Nearly one third of participants from FSSF-eligible countries. - Alternative completion ratio: of 522 registered, 195 did not complete any webinars or tutorials; among 327 participants who actively engaged, completion rate = 80.7%. - Participant feedback: - Course completion rate of 76 percent, considering participants that initiated the online course. - 99 percent of participants who completed the course evaluation rated SROC “very satisfactory” or “satisfactory”. - 81 percent commented on course highlights, praising content and structure. - Suggestions: more recent case studies, practical exercises, more interactive webinars. ### Cyber Risk Supervision Online Course (CRSOC) - Launched for financial sector regulators and supervisors; offered to the public starting September 2022. - Structure: five modules and a practical case-study assignment. - FY2025 participation and outcomes: - 1,450 participants registered (436 government officials and 1,014 members of the public). - 560 participants were active. - 342 participants successfully completed the course. - Approximately half of participants from FSSF-eligible countries. - Course completion rate = 65 percent, considering participants that initiated the course. - Participant feedback: all respondents indicated course objectives were fully met; more than 95 percent reported module objectives well-defined and content appropriate. ### Cybersecurity Workshop (eighth Annual) - Held in December 2024 in Washington D.C., in-person. - Attendance: over 97 participants from 59 countries, including many FCS. - Theme: “Managing Cyber Risk of the Financial Sector—Why, How, and What.” - Topics included emerging threat landscape, cyber strategy, systemic cyber risk, third-party risk management, regulatory frameworks, stress-testing, AI/quantum computing, incident reporting, and capacity building. - Workshop lessons: - (i) Evolving threat landscape with new attack types. - (ii) Need for a focused, forward-looking cyber strategy. - (iii) Risks from reliance on third-party service providers require broader regulations. - (iv) Balance risks and benefits of AI and quantum computing while monitoring developments. - Capacity constraints in LLMICs are severe, necessitating further support. ### Outlook for FRM Delivery (FY2026) - Priorities: - Continue CD delivery under ongoing and upcoming follow-up TA projects. - Deliver new diagnostics. - Bilateral CD continuity in nine countries: Burundi, Cabo Verde, the Democratic Republic of Congo, Eswatini, Lesotho, Nepal, Rwanda, Sierra Leone, and Zimbabwe (projects in Rwanda and Sierra Leone will conclude in summer 2025). - New follow-up TA projects beginning in FY2026: Kenya, Madagascar, Papua New Guinea, Somalia, and Vanuatu. - Diagnostics: - Zambia FSSR to conclude in FY2026. - New diagnostics planned in Bhutan, Mauritania, and the Solomon Islands. - Targeted FSSR diagnostic in Kosovo. - Multi-country CD to continue: new editions of SROC and CRSOC, and annual cybersecurity workshop tentatively scheduled for January 2026. *Source: IMF FSSF Annual Report FY2025.* --- ### Financial Statistics Module (FSM): Recent Developments and Outlook ### Phase transition and achievements - FSM under Phase I continued until end-December 2024; Phase II-funded activities began January 2025. - At close of Phase I, FSM support resulted in significant improvements in availability and quality of financial sector statistics in beneficiary LLMICs. - Nearly all targets for FSM achieved or exceeded as discussed in the Phase I Achievement Report. - Of 31 CD activities conducted in FY2025, almost half were implemented under Phase II between January and April 2025. ### Implementation progress and modalities - Implementation status: - 63 percent of activities in the 18-month work plan for FY2025-26 Q2 were implemented during the first 12 months (implementation rates calculated against the original 18-month plan). - Modalities: - Blend of in-person and remote; in-person accounted for 58 percent of all CD activities. - Nearly 80 percent of CD on FSIs delivered virtually (mostly via regional webinars). - All BSA TA activities were in-person due to low capacity, connectivity constraints, and data/labor intensity. - Short-term engagements: - Short-term (limited) engagements remained important and cost-effective. - Remote short-term engagements addressed issues in Angola, Liberia, Lesotho, Malawi, Mauritania, Micronesia, and West Bank and Gaza. - During FY2021–25, STA delivered nearly 262 limited engagements, of which 15 were conducted in FY2025. ### FY2025 work plan implementation snapshot (summary) - Planned CD activities in FY25 work plan (May 2024–October 2025): Total planned = 42; Implemented = 23; Implementation rate = 55%. - FSIs: Planned 21; Implemented 11; Implementation rate = 52%; Unused regional placeholders (As of April 2025): APD – 4; AFR – 3; MCD -2. - BSA: Planned 21; Implemented 12; Implementation rate = 57%; Unused regional placeholders (As of April 2025): AFR (MFS)– 4; APD (MFS) – 2; MCD (MFS) – 1; WHD (MFS) - 1; Kosovo (GFS) - 1. - Total with STA participating in FSSRs: Planned 50; Implemented 31; Implementation rate 62%. - STA participation in FSSRs: Planned 8; Implemented 8; 100% implementation. ### STA engagement in FSSR missions (FY2025) - STA participated in all six FSSR missions organized by MCM: Somalia, Papua New Guinea, Madagascar, Kenya, Vanuatu, and Zambia. - STA contributions: assessed data quality and compilation capacity and developed a roadmap for CD activities. - Follow-up TA missions being planned under FSM in line with FSSR diagnostic recommendations. ### FSIs Sub-Module: implementation and outlook - Demand focus: improved compilation methodology and coverage including for nonbanks. - FY2025 activities: - Six regional webinars on compiling FSIs for nonbank financial institutions (OFCs) with about 450 participants from 47 LLMICs. - Five TA missions supported LLMICs (including one FCS): Mauritania, Burundi, COBAC, Samoa, and Guinea. - Samoa: assisted in expanding FSIs coverage to include nonbank financial institutions. - Guinea: assisted in aligning compilation methodology with the 2019 FSIs Compilation Guide and resuming reporting to STA. ### BSA Sub-Module: implementation and outlook - FY2025 TA missions: - Nine TA missions supported eligible LLMICs (including four FCS) in developing primary statistics to compile the BSA matrix. - Key outcomes (selected): - Improvement of source data processing in DRC. - Compilation of new dataset for other depository corporations (ODCs), 2SR, in Yemen. - Improved compilation methodology in El Salvador. - Resumption of MFS reporting in BEAC. - Expanding MFS coverage to OFCs in Rwanda. - IIP improvements in Nepal, Bhutan, and South Sudan. - Support to Kosovo in developing financial accounts with focus on the government balance sheet. - Efficiency gains: - Two TA missions to Burundi and DRC addressed both MFS and FSI objectives, improving efficiency for low-capacity countries. - BSA workshops: - Three BSA workshops (Middle East and Central Asia, Asia-Pacific, IMF HQ) delivered in-person, partially funded from the FSSF. - Total participants: 52 from central banks, national statistics offices, and ministries of finance, including participants from 15 FSSF-eligible countries (including one FCS—Solomon Islands). - HQ workshop trained 39 participants; 22 from FSSF-eligible countries. - HQ course rating: overall course rating = 4.9 (out of 5). ### Box 3 — Enhancing MFS in Rwanda (Mission July 29–August 9, 2024) - Objective: expand coverage of monetary statistics to include OFCs using SRF 4SR; objective fully achieved. - Outcomes: - NBR commenced submission of OFCs data to STA in December 2024 and disseminated the data by end-March 2025 target. - New data now accessible in the IMF database. - Mission facilitated development of a BSA matrix with full financial sector coverage. - FSIs resumed reporting in November 2024 and are now updated regularly. - Mission provided a three-day training to Rwandan officials in MFS and BSA. ### Outlook for FSM Delivery - Drivers of continued demand: elevated financial vulnerabilities in many LLMICs; tighter global financial conditions; weak growth prospects and elevated public debt; shifting landscape of financial risks driven by technological advancements. - Delivery modalities: blend of TA missions, regional training workshops, and ad-hoc short-term engagements; virtual formats for topical multi-country training (e.g., FSIs webinars); in-person engagements predominant. - Planning flexibility: regional placeholders from Phase I fully applicable to bilateral TA missions under Phase II; STA will adjust workplan per eligibility criteria changes. *Source: IMF FSSF Annual Report FY2025.* --- ### FY2026-27 workplan focus and financial update ### FSIs sub-module: FY2026-27 priorities and planned activities - Primary focus: improve underlying compilation framework and coverage for compiling FSIs, including for nonbanks. - Continued support to develop metadata accompanying data releases and implement methodological updates, including compiling Concentration and Distribution Measures. - Planned CD activities (FY2026-27): - Ten bilateral TA missions and seven regional workshops for the FSIs sub-module. - Of the ten TA missions: placeholders—four for Asia and Pacific, two for Africa, two for the Middle East and Central Asia, and one for Western Hemisphere. - Regional webinars on specific FSI topical areas planned for FY2026. - One regional training workshop for Asia Pacific planned at SARTTAC in FY2026. ### BSA sub-module: FY2026-27 outlook and planned activities - Continued focus on developing primary statistics underlying BSA compilation and improving methodologies and coverage for MFS, GFS and IIP. - MFS work to extend to digital money, crypto assets, and corporate and household debt. - Planned CD activities (FY2026-27): - Total of 21 CD activities: 15 bilateral TA missions with regional placeholders, four FSSR missions and two regional workshops. - Of the 15 TA mission placeholders, 9 rolled over from FY2025. - Proposed additional six TA missions to support IIP and GFS work (Lesotho, Mozambique, Nepal, Bhutan, and two regional placeholders). ### Financial update: fundraising, cash position, and expenditures - Donor commitments secured: - Five donor partners from previous phase signed agreements totaling US$17 million (China, Luxembourg, Saudi Arabia, Sweden, and Switzerland). - Republic of Korea newly partnered with contribution of US$2 million. - Additional contribution of US$1.7 million from Saudi Arabia is being processed. - Fundraising secured US$20.7 million, leaving the gap at US$19.3 million as of April 30, 2025. - Cash position: - Cash on hand plus expected inflows from signed agreements currently enable FSSF to deliver planned activities through end of FY2027. - Targeted fundraising amount up to US$40 million; gap remains. - Expenditures: - FY2025 expenses under Phase II = US$2.5 million. - Total expenses combined with those under Phase I for the same period = US$5.6 million. - Phase I financially closed; unspent balance of US$660K (as of April 2025) proposed to be transferred into Phase II. ### Updated work plan and budget figures - Updated aggregate work plan under Phase II: US$13.6 million for May 2024 to October 2026 (through Q2 of FY2026). - Includes an additional US$7.2 million on top of the US$6.4 million initially endorsed at the start of Phase II. - Governance and scheduling items for endorsement: - Replace MCD BSA (workshop) placeholder with MCD (CCAMTAC) workshop titled "Reflecting Digitalization in Financial Sector Statistics". - Endorse Updated Work Plan (Planned Budget: US$13.6 million). - Continue FSSF-funded engagement in Kosovo with new targeted diagnostic proposed in second half of 2025. - Next SC Chair and Vice Chair to be announced in FY2026. - Next semi-annual check-in meeting: December 2025 (virtual). - Next annual SC meeting: June/July 2026. ### FY2025 delivery, outcomes, and capacity-building results (FSM) - Overall delivery under FSM in FY2025: - 31 out of 49 planned CD activities in the 18-month work plan were completed. - The 31 activities comprised 11 out of 21 planned FSI TA missions and 16 out of 20 BSA activities, including participation in eight FSSR missions. - FSIs FY2025 highlights: - Eleven CD activities completed under FSIs submodule: five TA missions and six regional webinars. - Examples: - Burundi (in-person mission April 28–May 9, 2025): assisted BRB to finalize FSIs and MFS compilation tools; guided validation and agreed target date to begin regular reporting to STA. - COBAC (in-person mission January 20–31, 2025): assisted new FSIs compilation framework and resumption of compilation and dissemination for CEMAC countries. - Guinea (virtual mission December 2–6, 2024): assisted CBRG to resume submission of FSIs to STA with new templates consistent with 2019 FSIs Compilation Guide. - BSA capacity-building results: - Three BSA training workshops supported with total of 119 participants. - All trainings met minimum requirement of a 15 percent learning gain (difference between pre and post quiz). - At least half of participants achieved minimum target of 60 percent on post-course test. - Selected statistical compilation improvements reported in FY2025: - Strengthened FSI compilation methodology in Guinea. - New dataset compiled and disseminated publicly in Samoa. - Improved periodicity, timeliness, and consistency of data in Burundi, COBAC, and Mauritania. - Strengthened MFS and GFS compilation methodology in El Salvador and Kosovo, respectively. - Ensured source data adequacy for MFS compilation in DRC. - New datasets compiled and disseminated to the public in Rwanda and disseminated internally in BEAC and Yemen. - Improved periodicity, timeliness, and consistency of data in Nepal, Bhutan, and South Sudan. *From the IMF: Financial Sector Stability Fund (FSSF) Annual Report, FY2025 (End-April 2025).* ### 1. Building Blocks of the FSSF ____________________________________________________________________________ 8 ### 1. Building Blocks of the FSSF ### Executive summary and scope - The Financial Sector Stability Fund (FSSF) is a thematic multi-donor fund supporting IMF programmatic capacity development (CD) on financial sector stability in low and lower-middle income countries (LLMICs) and fragile and conflict-affected states (FCS). - The FSSF comprises two modules: the Financial Reform Module (FRM) and the Financial Statistics Module (FSM). - Phase I concluded on December 31, 2024. Phase II began on May 1, 2024; the two phases overlapped between May and December 2024 to facilitate transition. - The reporting period for FY2025 runs from May 1, 2024 through April 30, 2025. - FY2025 FSSF spending amounted to US$5.6 million, down from US$7.1 million in FY2024. - The Phase I unspent balance of US$660K (as of April 2025) is proposed to be transferred into the fund for Phase II. ### Program management, monitoring, and coordination - FSSF CD projects are country-tailored and use a strategic logical framework (logframe) aligned with the IMF’s results-based management (RBM) framework. - The FRM is managed by the IMF’s Monetary and Capital Markets Department (MCM); the FSM is overseen by the IMF’s Statistics Department (STA). - STA participated in all FSSR diagnostic missions during FY2025; all FSSR reports now include a chapter on financial sector statistics. - The FSSF Steering Committee (SC), composed of donor and IMF representatives (with observers including the World Bank), meets annually and performs a mid-year check to guide strategy and endorse work plans. ### Developments and outlook (FY2025) - FSSF-financed CD delivery in FY2025 was strong with continued demand for new Financial Sector Stability Review (FSSR) diagnostics and traction on TA workplans, though Phase I project completions shifted focus to final assessments and reduced overall spending. - FY2025 highlights include robust execution under active Phase II projects, a decline in total spending to US$5.6 million due to Phase I closures and resident advisor terminations, and delivery of five FSSR diagnostics (with follow-up TA workplans scheduled to start in FY2026). ### Financial Reform Module (FRM) — key FY2025 activities and status - Completed FSSR diagnostics in FY2025: Kenya, Madagascar, Papua New Guinea, Somalia, and Vanuatu. - Initiated diagnostic: Zambia. - Follow-up TA projects finalized as Phase I closed: Cambodia, Djibouti, Gambia, Guinea, Kosovo, Uzbekistan, and Zimbabwe. - Active TA projects remaining as of end-April 2025: Burundi, Cabo Verde, the Democratic Republic of Congo, Eswatini, Lesotho, Nepal, Rwanda, Sierra Leone, and Zimbabwe. - Five additional projects are expected to begin following recently completed FSSR diagnostics. - Bilateral CD work was complemented by multilateral CD: Supervisory and Regulatory Online Course, Cyber Risk Supervision Online Course, and the eighth annual Cybersecurity Workshop. - Resident advisor placements during Phase I: Democratic Republic of Congo, Cambodia, Djibouti, the Gambia, Rwanda, Sierra Leone, Sri Lanka, and Uganda. The advisors in Cambodia, Djibouti, Gambia, Sri Lanka, and Uganda concluded their assignments; as of end-April 2025, resident advisors remain in the Democratic Republic of Congo, Rwanda and Sierra Leone. ### Financial Statistics Module (FSM) — key FY2025 activities and status - FSM continued support for strengthening financial sector and balance sheet statistics via the Balance Sheet Approach (BSA) and the Financial Soundness Indicators (FSIs) sub-modules. - Program target progress: 63 percent of activities envisaged in the FY2025-FY2026 Q2 workplan have been implemented to date. - Most FSSF-eligible countries can now regularly compile a basic set of FSIs; the focus is shifting to compiling FSIs for non-banks. - BSA efforts prioritize development of primary statistics and improved methodologies and coverage for Monetary and Financial Statistics (MFS), Government Finance Statistics (GFS) and International Investment Position (IIP). - STA participation in all FSSR diagnostics complemented FRM work by assessing data quality and compilation capacity of relevant financial statistics. ### Responses to the 2023 Independent Mid-Term Evaluation of Phase I - Internal FSSR Handbook updated to provide additional guidance on diagnostic and follow-up TA elements. - Follow-up TA projects now begin with an assessment of authorities’ absorption capacity and focus on a smaller number of priority workstreams to increase traction. - Greater flexibility in transferring resources across follow-up TA projects implemented to increase execution efficiency. - STA aligned FSSF program-level logframes with IMF RBM logframes and developed a new monitoring tool, increasing the share of "rated outcomes" to 86 percent. - IMF coordination with the World Bank and other CD partners has been strengthened to ensure smooth and impactful follow-up TA delivery. - Deployment of resident advisors for new follow-up TA projects is being considered carefully. ### FY2025 budget and execution indicators (selected figures from the FY2025 progress report; in US$ thousands) - Reform Module: Current Budget as of April 2025 = 5,557; Expenses = 2,023; Remaining Budget = 3,534; Execution (%) = 36% - FSSR Diagnostics (5/1/2024–4/30/2029): Current Budget = 2,019; Expenses = 977; Remaining Budget = 1,042; Execution (%) = 48% - FSSR Follow-up TA projects: Current Budget = 3,538; Expenses = 1,046; Remaining Budget = 2,492; Execution (%) = 30% - Burundi (3/28/2025–4/28/2028): Current Budget = 373; Expenses = -; Remaining Budget = 373; Execution (%) = 0% - Cabo Verde (11/1/2024–4/29/2026): Current Budget = 227; Expenses = 73; Remaining Budget = 154; Execution (%) = 32% - Congo DR (6/1/2024–12/31/2026): Current Budget = 560; Expenses = 407; Remaining Budget = 298; Execution (%) = 58% - Eswatini (9/1/2024–12/30/2026): Current Budget = 485; Expenses = 124; Remaining Budget = 360; Execution (%) = 26% - Lesotho (10/31/2024–4/30/2026): Current Budget = 171; Expenses = 64; Remaining Budget = 107; Execution (%) = 38% - Nepal (9/1/2024–4/29/2027): Current Budget = 441; Expenses = 15; Remaining Budget = 426; Execution (%) = 3% - Rwanda (10/31/2024–6/30/2025): Current Budget = 527; Expenses = 173; Remaining Budget = 353; Execution (%) = 33% - Sierra Leone (12/31/2024–10/30/2025): Current Budget = 217; Expenses = 129; Remaining Budget = 88; Execution (%) = 60% - Zimbabwe (3/14/2025–8/31/2026): Current Budget = 394; Expenses = 60; Remaining Budget = 333; Execution (%) = 15% - Endorsed budget for follow-up TA projects = 1,497 (N/A execution) - Statistics Module (11/1/2024–4/30/2029): Current Budget = 848; Expenses = 462; Remaining Budget = 385; Execution (%) = 55% - Governance (4/30/2024–4/27/2029): Current Budget = 27; Expenses = -; Remaining Budget = 27; Execution (%) = 0% - Total (in US$ thousands): Current Budget = 6,432; Expenses = 2,486; Remaining Budget = 3,946; Execution (%) = 39% - Trust Fund Management Fee (of which): Current Budget = 421; Expenses = 163; Remaining Budget = 258 *Source: Financial Sector Stability Fund (FSSF) FY2025 report (May 1, 2024–April 30, 2025), IMF.* ### 9. The FSSF is the main trust fund for MCM’s CD activities on financial sector stability ### 9. The FSSF is the main trust fund for MCM’s CD activities on financial sector stability ### Funding and overall footprint - In FY2025, the FSSF accounted for 12 percent of overall MCM external funding. - In FY2025, FSSF spending on MCM CD projects reached US$4.6 million. - FRM activities were financed by a combination of funds from Phase I and II, reflecting the overlap between the two phases during May-December 2024. - Cooperation spans nearly all FSSR recipient countries; the IMF and the World Bank delivered a joint presentation on their work in the context of the Somalia FSSR to the FSSF Steering Committee in December 2024. - FSSR country coverage is reported as of end-April 2025. - Five FSSR diagnostics were completed in FY2025, bringing the total number of completed FSSR diagnostics to 28. - Work on the FSSR diagnostic in Zambia started in FY2025, with the scoping mission completed and the main mission scheduled for early FY2026. ### Country-level diagnostics — main takeaways (diagnostics completed in FY2025) - Kenya: - Financial system: relatively large and complex; multi-agency sectoral setup coordinated through the Joint Financial Sector Regulators Forum. - Digital finance: notable early adopter; widespread use of mobile money technologies. - FSSR focus areas: (i) financial sector regulation and supervision; (ii) bank resolution, crisis management and safety nets; (iii) macroprudential regulation and supervision; (iv) stress testing; (v) digital finance; and (vi) financial sector statistics. - Key findings: CBK adapting supervisory framework but faces resource and expertise gaps; planned adoption of several reform packages aimed at implementing Basel II/III is crucial; safety net and crisis management need higher institutional profile and legal reforms; roles/responsibilities for macroprudential policy across regulators should be better defined; stress testing culture established but methodology and risk coverage need improvement; supervision of e-money industry should be upgraded; monitoring and risk assessment need better data quality, granularity, and coverage. - Follow-up: TA project discussed with authorities in late May 2025. - Madagascar: - Financial system: bank-dominated; one of the lowest levels of financial penetration in Sub-Saharan Africa. - FSSR focus areas: (i) financial sector supervision and regulation; (ii) stress testing; (iii) bank resolution, crisis management and safety nets; (iv) prudential supervision of electronic money enterprises, digital finance and financial inclusion; and (v) financial sector statistics. - Key findings: notable progress on 2016 FSAP recommendations; FSSR recommended further Basel II/III implementation and enhanced oversight of expanding electronic money activities; strengthen stress testing capacity to domestic specificities and integrate into systemic risk assessments; establish a resolution function and other key safety-net components. - Follow-up: TA project discussed with authorities in late May 2025. - Papua New Guinea: - Context: FCS with a relatively small financial sector dominated by banks, a small insurance sector, and limited financial inclusion. - FSSR focus areas: (i) financial regulation and supervision; (ii) systemic risk analysis and macroprudential policy framework; (iii) bank resolution, crisis management and safety nets; (iv) payment and settlement systems; and (v) financial sector statistics. - Key findings: many weaknesses and challenges despite recent progress; advise continued upgrades to regulatory and supervisory frameworks for deposit-takers, superannuation funds, and insurance companies; improve systemic risk analysis and macroprudential policymaking (risk reporting, stress testing, use of policy instruments, public communication, internal organization); improve financial safety net including broadening resolution powers and enhancing emergency liquidity assistance; strengthen payments system policy and oversight; establish comprehensive prudential regulation for e-money providers. - Follow-up: TA project discussed and currently being finalized with the Bank of Papua New Guinea. - Somalia: - Context: FCS with a bank-dominated financial sector facing political and security challenges; diagnostic coincided with launch of new five-year CBS strategic plan focused on enhancing financial stability. - FSSR focus areas: (i) financial stability analysis; (ii) supervision and regulation; (iii) payment systems and mobile money oversight; and (iv) financial sector statistics. - Thematic priorities: legal framework, data quality and coverage, oversight framework, and staff capacity. - Key findings: priority to passage of laws including the Financial Institutions Law, National Payments Act, and the Central Bank Act to expand regulation perimeter and supervisory powers; need to develop regulations, guidelines, and supervisory manuals; banking sector data is comprehensive but data from non-banking financial institutions including telecoms is limited; lack of guidelines causes variance and unreliable reporting; supervision staff capacity needs enhancement. - Follow-up: TA project being finalized and will include training sessions on foundational financial stability and supervisory topics. - Vanuatu: - Financial system: banking system large relative to the economy with total assets amounting to roughly 1.5 times GDP; foreign-owned banks dominate. - FSSR focus areas: (i) financial regulation and supervision; (ii) systemic risk analysis and stress testing; (iii) bank resolution, crisis management and safety nets; and (iv) financial sector statistics. - Key findings: risks from high non-performing loans (NPLs), limited resolution tools, absence of a formal bank resolution regime and emergency liquidity facility; recommended strengthening RBV stress testing capacities, intensifying supervision, improving legal powers and enforcement tools, and enhancing supervision on asset quality for prudent loan classification and provisioning. - Follow-up: TA project to be discussed with RBV in FY2026. ### FSSR follow-up TA activities — expenses and project status - Overall expenses under FSSR follow-up TA projects in FY2025: US$2.6 million. - Phase I concluded in December 2024; most Phase I projects concluded (Cambodia, Djibouti, Gambia, Guinea, Kosovo, Uzbekistan, and Zimbabwe). - Five follow-up TA projects continued from Phase I into Phase II: Cabo Verde, DRC, Lesotho, Rwanda, and Sierra Leone. - Four new projects started during FY2025 under Phase II: Burundi, Eswatini, Nepal, and a new follow-up project in Zimbabwe. - Specific country follow-up activities and milestones: - Burundi: - Mission in January 2025 to review and align Emergency Liquidity assistance (ELA) framework with best practices. - Follow-up mission on collateral issues planned in May 2025 to identify new pools of assets for collateral and clarify current collateral set-up. - April 2025 training on organization of on-site inspections focusing on credit risk via credit file reviews; horizontal inspection on credit risk on systemic institutions to be launched later in the year. - April 2025 mission supported implementation of a new bank scoring methodology and its integration into supervisory framework. - Funding note: TA activities to Burundi until now were funded by Fund own resources (IMF01); upcoming TA will be funded by the FSSF after funding proposal finalization. - Cabo Verde: - TA Report after March 2024 mission facilitated central bank decision to set up a resolution unit. - Resolution unit became operational on May 1st, 2025 (not yet fully staffed). - March 2025 TA mission assisted in operationalizing macroprudential policy framework, reviewing macroprudential toolbox, assessing systemic risk assessment framework and data gaps, reviewing roles and responsibilities, and suggesting improvements. - Cambodia: - Follow-up TA helped substantially improve macroprudential policy framework and stress testing capabilities. - NBC established a dedicated Financial Stability Department in early 2024; Financial Stability Committee role strengthened. - Project ended in November 2024. - DRC: - Resident advisor supported establishment of Financial Stability Department at CBC in September 2024. - Resident advisor supported completion of first Financial Stability Report during 2025; Report submitted to Financial Stability Committee for review. - Missions focused on implementing bank scoring system, reviewing capital requirements and liquidity regulations toward Basel III convergence. - Good progress on Liquidity Coverage Ratio (LCR) implementation: finalizing LCR regulations, incorporating LCR prudential statement into CBC supervisory framework and developing control methodologies. - April 2025 mission delivered insurance supervision capacity building (off-site analysis and inspection methodology). - January and March 2025 TA missions reviewed ELA framework and collateral management practices to identify new eligible collateral sources. - Djibouti: - Banking supervision resident advisor supported supervisory manuals and upgrades to banking supervision; limited traction due to staff shortages. - Advisor trained supervisors for on-site missions leading to resumption of on-site inspections; introduced internal procedures and templates for off-site supervision. - Project ended in September 2024. - Eswatini: - Progress on systemic risk analysis after missions revising stress testing framework and Financial Stability Report and developing a credit risk model. - Capacity building on insurance supervision started in December 2024 with legislative review and assessment of supervision manuals for transition to risk-based supervision (RBS). - Onsite visit provided RBS training and action plan development. - April 2025 work on early warning and recovery planning framework with focus on prompt corrective action. - Gambia: - Resident advisor supported preparation of regulatory guidelines on credit and operational risk management and continued training of banking supervision staff. - In 2024, Banking Supervision Department recommended tightening capital requirements coinciding with migration to Basel II/III. - Project ended in December 2024. - Guinea: - October 2024 mission provided detailed guidance on ELA framework parameters and revising ELA Instruction; discussions covered internal organization, monitoring and conditionality, preparedness, and communication. - TA on bank resolution coordinated with ELA mission; draft banking law including special resolution regime prepared in FY2024 and operationalization assisted. - Project ended in December 2024. - Kosovo: - June 2024 mission assessed progress on top-down stress testing framework and delivered tools for satellite models; validated historical credit registry data and calibrated satellite credit and interest rate risk models. - November 2024 mission outlined next steps for Supervisory Review Process (SRP) and further Basel alignment; provided a multi-year SRP roadmap. - Phase I-funded follow-up TA project ended in December 2024. - A new targeted diagnostic focusing on banking supervision and macroprudential policy will be conducted in FY2026 under Phase II — proposed criteria for such targeted diagnostics include demand from authorities, evidence of traction of previous recommendations, IMF staff judgment that follow-up work is warranted, and significant changes in oversight or stability frameworks since initial diagnostic; all conditions met for Kosovo. - Lesotho: - Interactive engagement in February and March 2025 progressed systemic risk analysis and stress testing. - Remote mission developed a multi-period stress testing framework; field-based capacity building on bank solvency stress testing and scenario formulation delivered. - Follow-up on risk dashboard, lending survey, and Financial Stability Report; progress on early intervention and recovery planning. - CBL finalized draft guideline for recovery planning for banks in 2024 and issued it for industry consultation; mission in February 2025 reviewed CBL response to industry. - Nepal: - September 2024 mission trained supervisors at Nepal Rastra Bank (NRB) on IFRS 9 and expected credit loss supervision focusing on asset classification and provisioning from prudential and accounting perspectives. - Further planned activities not delivered due to authorities’ availability; FSSR recommendations remain a priority but absorption capacity limited. - Planned future missions on Basel LCR implementation and cross-border payments capacities. - Rwanda: - Resident advisor contract extended until end-June 2025 under Phase II to progress RBS. - Advisor provided training on liquidity risk management and supported NBR’s initiation of LCR and Net Stable Funding Ratio stress testing preparations. - Advisor supported development and operationalization of RBS framework for microfinance institutions, review of regulatory stress tests, training on credit scoring model risk review, and external credit assessment institutions recognition process. - TA supported review and update of Rwanda’s bank resolution law. - Sierra Leone: - Resident advisor contract extended until end-June 2025 under Phase II to progress RBS. - With advisor support, BSL banking supervision staff conducted several full-scope on-site reviews in 2024 and 2025. - BSL issued guidelines on corporate governance, credit risk management, enterprise risk management and foreign exchange lending. - Early 2025 regulatory priorities established: implementing Basel II/III Pillar I, guidelines on operational risk, third party risk management, and liquidity. - BSL developed an ELA policy approved by BSL Board in September 2024; March 2025 on-site mission operationalized ELA governance, accounting, communications, technical documentation and conducted an ELA simulation. - December 2024 mission focused on capacity building to establish a resolution function within BSL and operationalize crisis management powers from 2019 reforms; mission prepared draft manuals and procedures (crisis management manual, resolution planning manual, memorandum of understanding). - Uzbekistan: - Following departure of resident advisor in April 2024, a short-term stress testing mission in June 2024 was the third and last TA mission on stress testing, focusing on solvency and liquidity stress testing frameworks. - Recommendations included actions to improve stress testing methodologies and assumptions and enhance data collection and management. - FSSR project ended in August 2024. - Zimbabwe: - November 2024 mission delivered targeted training to RBZ banking supervisors and reviewed drafts of updated capital regulatory framework (regulations and prudential returns) focusing on standardized approaches for credit, operational and market risks, capital definition, leverage ratio, large exposures, and capital conservation buffer. - Phase I-funded FSSR project ended in December 2024. - A new targeted 1.5-year follow-up TA project was proposed and approved under Phase II to finalize work on capital regulation, improve consolidated supervision, and enhance corporate governance; first mission under new project took place in March 2025 focusing on finalizing Basel III capital framework implementation. *Source: FSSF Annual Report FY2025.* ### 11. Multi-country CD activities complemented the bilateral country work under the FRM in ### Multi-country CD activities complemented the bilateral country work under the FRM in FY2025 ### Supervisory and Regulatory Online Course (SROC) - The SROC is delivered jointly with the Financial Stability Institute (FSI) of the Bank for International Settlements (BIS). - Target audience: supervisors new to banking regulation and supervision, and experienced supervisors seeking to refresh knowledge. - Course composition: - Tutorials developed by the FSI. - IMF case-study modules. - Seven live webinars, co-hosted by MCM and FSI staff and recorded for later viewing. - Seventh edition details: - Ran over a period of seven months and concluded in March 2025. - 522 participants from 108 jurisdictions registered in FY2025. - A 50 percent completion rate was recorded. - Nearly one third of participants were from FSSF-eligible countries. - Due to non-engagement, an alternative completion ratio was calculated: out of the 522 registered participants, 195 did not complete any webinars or tutorials; considering the 327 participants who actively engaged in the course, the resulting completion rate is 80.7%. - Additional adjustments: - An additional webinar on “Fintech and Financial Stability” was added in response to participant requests. - Since the introduction of “Climate Risk and Fintech” two editions ago, the course previously offered a joint webinar covering both topics but separated them to allow adequate presentation time. - Participant feedback (seventh edition): - Course completion rate of 76 percent, considering the participants that initiated the online course. - 99 percent of participants who completed the course evaluation considered the SROC “very satisfactory” or “satisfactory”. - 81 percent commented on course highlights, praising content and structure. - Suggestions centered on incorporating more recent case studies, practical exercises, and making webinars more interactive. - Strong recognition of the quality and completeness of material, and the value of IMF real-life case studies and live online webinars for practical perspectives. ### Cyber Risk Supervision Online Course (CRSOC) - Originally launched for financial sector regulators and supervisors; offered to the public starting in September 2022. - Course aim: advance understanding of cyber risk and its potential impact on financial institutions and financial stability. - Structure: five modules and a practical assignment based on a case study. - FY2025 participation and outcomes: - 1,450 participants registered (436 government officials and 1014 members of the public). - 560 participants were active. - 342 participants successfully completed the course. - Approximately half of participants were from FSSF-eligible countries. - Course completion rate was 65 percent, considering the participants that initiated the course. - Participant feedback: - All participants responding to the survey indicated the course objectives were fully met. - Participants appreciated solid content, elaborate details, comprehensive coverage, and clear structure. - More than 95 percent indicated module objectives were well-defined, content appropriate and well-structured, and easy to understand. - Participants reported learning new knowledge and skills. ### Cybersecurity Workshop (eighth Annual) - The eighth IMF annual cybersecurity workshop was held in December 2024 in Washington D.C., in an in-person format. - Attendance and participation: - Over 97 participants from 59 countries attended, including many FCS. - Numerous external speakers, including senior policymakers and industry experts, contributed presentations. - A presentation on third-party risk management was included. - Level of engagement was very high and participant feedback was positive. - Theme: “Managing Cyber Risk of the Financial Sector—Why, How, and What.” - Topics covered: - Emerging threat landscape. - Cyber strategy. - Systemic cyber risk. - Third-party risk management. - Regulatory frameworks. - Stress-testing. - Intersection of cyber and Artificial intelligence/quantum computing. - Responses to significant cyberattacks. - Incident reporting. - Capacity building. - Workshop lessons and findings: - (i) The threat landscape is evolving with the emergence of new types of attacks. - (ii) To address cyber risk against a changing threat landscape, a focused, forward-looking cyber strategy is essential. - (iii) Increasing reliance on third-party service providers presents risks that necessitate broader regulations beyond traditional outsourcing. - (iv) Discussions on artificial intelligence and quantum computing highlighted the need to balance risks and benefits, while monitoring developments. - Capacity constraints in LLMICs are severe, necessitating further support. ### Outlook for FRM Delivery - FY2026 FRM workplan priorities: - Continue CD delivery under ongoing and upcoming follow-up TA projects. - Deliver new diagnostics. - Bilateral CD continuity: - CD activities will continue in nine countries: Burundi, Cabo Verde, the Democratic Republic of Congo, Eswatini, Lesotho, Nepal, Rwanda, Sierra Leone, and Zimbabwe (projects in Rwanda and Sierra Leone will conclude in the summer of 2025). - New follow-up TA projects beginning in FY2026: Kenya, Madagascar, Papua New Guinea, Somalia, and Vanuatu. - Procedural notes: - Individual project proposals containing logframes with specific country-level objectives and outcomes will be circulated to the FSSF SC for information in due course. - As endorsed previously by the FSSF SC, funds can be moved between follow-up TA projects to respond flexibly to changing country circumstances. - Diagnostics: - The FSSR diagnostic for Zambia will conclude in FY2026. - New diagnostics will be conducted in Bhutan, Mauritania, and the Solomon Islands. - A targeted FSSR diagnostic will take place in Kosovo. - Multi-country CD activities: - Will continue to complement bilateral CD work under the FRM. - Will include new editions of SROC and CRSOC, and the annual cybersecurity workshop, which is tentatively scheduled for January 2026. --- ### Financial Statistics Module (FSM): Recent Developments and Outlook ### Phase transition and overall achievements - FSM work under Phase I continued until end-December 2024, with Phase II-funded activities beginning in January 2025. - At close of Phase I, FSM support resulted in significant improvements in the availability and quality of financial sector statistics in beneficiary LLMICs, supporting financial stability and macro-financial policies. - Improvements included either enhanced compilation methodologies and coverage of the FSIs and/or enhancements in underlying data for the BSA matrix, with nearly all targets for FSM achieved or exceeded as discussed in the Phase I Achievement Report. - Of the total 31 CD activities conducted in FY2025, almost half were implemented under Phase II between January and April 2025. ### Implementation progress and modalities - Implementation status: - 63 percent of the activities in the 18-month work plan for FY2025-26 Q2 were implemented during the first 12 months. - Implementation rates are calculated against the original 18-month plan. - CD delivery modalities: - Combination of in-person and remote modalities used; in-person gradually became predominant, accounting for 58 percent of all CD activities. - Nearly 80 percent of CD on FSIs was delivered virtually (mostly via regional webinars). - All BSA TA activities were in-person due to low capacity, internet connectivity constraints, and the data- and labor-intensive nature of BSA work. - Short-term engagements: - Short-term (limited) engagements remained important and cost-effective for ad-hoc requests and urgent methodological and compilation issues. - Remote short-term engagements addressed issues in Angola, Liberia, Lesotho, Malawi, Mauritania, Micronesia, and West Bank and Gaza. - During FY2021–25, STA delivered nearly 262 limited engagements, of which 15 were conducted in FY2025. ### Table summary (FY2025 work plan implementation snapshot) - Planned CD activities in FY25 work plan (May 2024–October 2025): Total 42 planned; 23 implemented; Implementation rate 55%. - FSIs: Planned 21; Phase I – 3; Phase II – 8; (In-person – 2; Virtual – 9); Implementation rate 52%; Unused regional placeholders (As of April 2025): APD – 4; AFR – 3; MCD -2. - BSA: Planned 21; Phase I – 5; Phase II – 7; (In-person – 12; Virtual – 0); Implementation rate 57%; Unused regional placeholders (As of April 2025): AFR (MFS)– 4; APD (MFS) – 2; MCD (MFS) – 1; WHD (MFS) - 1; Kosovo (GFS) - 1. - Total with STA participating in FSSRs: 50 planned; 31 implemented; 62% implementation rate. - STA participation in FSSRs: 8 planned; Phase I – 7; Phase II – 1; (In-person – 4; Virtual – 4); 100% implementation. ### STA engagement in FSSR missions - During FY2025, STA participated in all six FSSR missions organized by MCM, following the recommendation of the 2023 Independent Mid-Term Evaluation of Phase I of the FSSF to enhance coordination and maximize project impact. - STA joined MCM’s main and scoping FSSR missions to Somalia, Papua New Guinea, Madagascar, Kenya, Vanuatu, and Zambia. - STA contributions focused on assessing data quality and compilation capacity of relevant financial statistics and developing a roadmap for CD activities. - Follow-up TA missions are being planned under FSM in line with FSSR diagnostic recommendations. ### Financial Soundness Indicators (FSIs) Sub-Module: Implementation and outlook - CD demand focus: - Improvements in compilation methodology and coverage of indicators including for nonbanks. - As most countries can compile the core set of FSIs, demand is shifting to implementing latest international accounting and regulatory frameworks and expanding coverage to nonbanks. - FY2025 activities: - Six regional webinars focused on compilation of FSIs for nonbank financial institutions (OFCs) to strengthen macro-prudential analysis. - About 450 participants attended the six regional webinars, including participants from 47 LLMICs. - Webinars provided practical hands-on guidance for compiling specific FSIs and metadata for OFCs such as insurance corporations, money market funds, and pension funds. - Five TA missions supported LLMICs (including one FCS) to improve compilation frameworks and coverage: Mauritania, Burundi, Central African Banking Commission (COBAC), Samoa, and Guinea. - Samoa mission assisted in expanding FSIs coverage to include nonbank financial institutions. - Guinea mission assisted in aligning compilation methodology with the 2019 FSIs Compilation Guide and resuming reporting of FSIs to STA. ### Balance Sheet Approach (BSA) Sub-Module: Implementation and outlook - Growing demand to support macro-financial policies and financial stability analysis. - FY2025 TA missions: - Nine TA missions supported eligible LLMICs (including four FCS) in developing primary statistics to compile the BSA matrix. - Key outcomes: - Improvement of source data processing in DRC. - Compilation of new dataset for other depository corporations (ODCs), 2SR, in Yemen. - Improved compilation methodology in El Salvador. - Resumption of MFS reporting in the Bank of Central African States (BEAC). - Expanding MFS coverage to OFCs in Rwanda. - IIP improvements in Nepal, Bhutan, and South Sudan. - Support to Kosovo in developing financial accounts with focus on the government balance sheet and assessing capacity development needs of the Kosovo Agency of Statistics (recently mandated to compile GFS). - Efficiency gains: - Synergies allowed two TA missions to Burundi and DRC to address both MFS and FSI compilation issues although planned under different workstreams. - Tackling FSIs and MFS objectives in a single mission proved efficient for low-capacity countries. - Follow-up mission to Burundi planned under FSIs sub-module during FY2026 is expected to also cover MFS. - BSA workshops: - Three BSA workshops for Middle East and Central Asia, Asia-Pacific, and IMF HQ were delivered in-person, partially funded from the FSSF. - Total participants: 52 from central banks, national statistics offices, and ministries of finance, including participants from 15 FSSF-eligible countries (including one FCS—Solomon Islands). - The HQ workshop trained 39 participants, of whom 22 were from FSSF-eligible countries. - Workshops were well received, with appreciation for in-person engagements due to the data-intensive nature of the course. ### Box 3 — Enhancing Monetary and Financial Statistics in Rwanda (Mission July 29–August 9, 2024) - Main objective: expand coverage of monetary statistics to include OFCs using SRF 4SR; objective fully achieved. - Outcomes and follow-up: - NBR commenced submission of OFCs data to the STA in December 2024 and successfully disseminated the data by the end-March 2025 target date in the Memorandum of Economic and Financial Policies. - New data is now accessible in the IMF database. - Mission facilitated development of a BSA matrix with full coverage of the financial sector and additional data from external, fiscal, and real sectors. - Emphasized importance of ensuring data consistency among the central bank, ODCs, and OFCs for accurate reporting and BSA compilation. - Authorities are working to compile and update a quarterly BSA for regular use in macro-financial and financial stability analyses. - Discussions were held on compilation of flows data for the MFS for full integration on stocks, transactions, and other flows. - Following mission recommendations, FSIs resumed reporting in November 2024 and are now being updated regularly. - The mission provided a three-day training to Rwandan officials in MFS and BSA. ### Outlook for FSM Delivery - Demand for CD on financial sector statistics is anticipated to remain strong due to: - Elevated financial vulnerabilities in many LLMICs. - Tighter global financial conditions and heightened economic uncertainty. - Weak growth prospects and elevated public debt. - High economic policy and trade uncertainty, foreboding further shocks, asset price corrections, and tightening financial conditions. - Shifting landscape of financial risks driven by technological advancements and changing market structures increases need for timely and granular data to strengthen macro-financial analysis. - Delivery modalities: - STA will continue using a blend of TA missions, regional training workshops, and ad-hoc short-term engagements. - Virtual format will be used for topical and shorter multi-country training engagements (e.g., FSIs webinars) to increase class size, facilitate compilation discussions, and promote peer learning. - In-person engagements will remain predominant due to the hands-on experience and effectiveness they provide. - Planning flexibility: - Flexibility in CD planning with regional placeholders from Phase I will be fully applicable to all bilateral TA missions under Phase II. - This flexibility initially applied for the FSIs sub-module in Phase I and will be extended to the BSA sub-module under Phase II. - Regional placeholders are rationalized by possible changes in eligibility due to annual updates in the list of FCS and country groupings by income level. - STA will flexibly adjust the workplan according to the latest eligibility criteria where necessary. *Source: IMF FSSF Annual Report FY2025.* ### 37. The FY2026-27 workplan will focus on improving the underlying compilation framework ### The FY2026-27 workplan will focus on improving the underlying compilation framework ### FSIs sub-module: FY2026-27 focus and planned activities - Primary focus: improving the underlying compilation framework and coverage for compiling FSIs, including for nonbanks. - Continued support to LLMICs to develop metadata to accompany data releases and to implement methodological updates, including compiling Concentration and Distribution Measures. - STA will assist and follow up with countries that have not yet started compiling or reporting FSIs for dissemination due to low capacity. - Expected outcome: better monitoring and analyzing the financial health and soundness of a country’s financial institutions and their corporate and household counterparts. - Planned CD activities (FY2026-27): - Ten bilateral TA missions and seven regional workshops for the FSIs sub-module (Appendix IV, Table IV-3). - Of the ten TA missions: four placeholders for Asia and Pacific, two for Africa, two for the Middle East and Central Asia, and one for Western Hemisphere. - Regional webinars on specific FSI topical areas planned for FY2026 (topic to be decided based on demand from LLMICs). - One regional training workshop for the Asia Pacific region planned at SARTTAC in FY2026. ### Balance Sheet Approach (BSA) sub-module: outlook and planned activities - Continued focus on developing the primary statistics underlying BSA compilation, shifting to improving compilation methodologies and coverage for MFS, GFS and IIP. - MFS work to extend to emerging topics: digital money, crypto assets, and corporate and household debt. - BSA contributions: help countries assess financial sector stability risks and vulnerabilities, and interconnectedness of sectors domestically and internationally. - Planned CD activities (FY2026-27): - Total of 21 CD activities: 15 bilateral TA missions with regional placeholders, four FSSR missions and two regional workshops (Appendix IV, Table IV-3). - Of the 15 TA mission placeholders, 9 were rolled over from FY2025 (comprising two placeholders for MFS in Asia and the Pacific, three for MFS in Africa, and one each for MFS in the Western Hemisphere and Middle East and Central Asia, and one each for GFS and IIP for Europe and Africa respectively). - Proposed additional six TA missions to support work on IIP (Lesotho, Mozambique, Nepal, and Bhutan) and GFS (one Asia and Pacific and one EUR placeholder). - Two training workshops to build capacity on compilation of MFS and BSA planned for PFTAC and the Middle East and Central Asia regions. ### Financial update: fundraising, cash position, and recent expenditures - Donor commitments secured: - Five donor partners from previous phase signed agreements totaling US$17 million (China, Luxembourg, Saudi Arabia, Sweden, and Switzerland). - The Republic of Korea newly partnered with a contribution of US$2 million. - An additional contribution of US$1.7 million from Saudi Arabia is being processed. - Fundraising secured US$20.7 million, leaving the gap at US$19.3 million as of April 30, 2025. - Cash position and planning: - Cash on hand plus expected inflows from signed agreements currently enable the FSSF to deliver planned activities through the end of FY2027. - To close the gap against the targeted fundraising amount of up to US$40 million, ICD, together with MCM and STA, will continue outreach to prior and potential partners to diversify the donor base. - Expenditures: - FY2025 expenses under Phase II are US$2.5 million. - Total expenses combined with those under Phase I for the same period amount to US$5.6 million. - Phase I is financially closed; the unspent balance of US$660K (as of April 2025) under Phase I is proposed to be transferred into the fund for Phase II. ### Updated work plan and budget figures - Updated aggregate work plan under Phase II: US$13.6 million for the period from May 2024 to October 2026 (through Q2 of FY2026). - This includes an additional US$7.2 million on top of the US$6.4 million initially endorsed at the start of Phase II. - The total figure encompasses dedicated budgets for the FRM and FSM modules, as well as administrative costs. - Governance and scheduling items for endorsement: - Replace the MCD BSA (workshop) placeholder with the MCD (CCAMTAC) workshop titled "Reflecting Digitalization in Financial Sector Statistics". - Endorse Updated Work Plan (Planned Budget: US$13.6 million). - Continue FSSF-funded engagement in Kosovo, with a new targeted diagnostic proposed in the second half of 2025. - Next SC Chair and Vice Chair to be announced in FY2026. - Next semi-annual check-in meeting: December 2025 (virtual). - Next annual SC meeting: June/July 2026. ### FY2025 delivery, outcomes, and capacity-building results - Overall delivery under FSM in FY2025: - 31 out of 49 planned CD activities in the 18-month work plan were completed. - The 31 activities comprised 11 out of the 21 planned FSI TA missions and 16 out of 20 BSA activities, including participation in eight FSSR missions. - FSIs specific FY2025 delivery highlights: - Eleven CD activities completed under the FSIs submodule comprising five TA missions and six regional webinars. - Country-level mission examples and results: - Burundi (in-person mission April 28–May 9, 2025): assisted BRB to finalize development of FSIs and MFS compilation tools; supported completion of new bridge tables; updated mapping of source data to SRFs and FSI templates; guided validation and agreed target date to begin regular reporting to STA. - COBAC (in-person mission January 20-31, 2025): assisted in developing a new FSIs compilation framework; recommended enforcing SPECTRA training clause, data cleansing, and resumption of regular compilation and dissemination for CEMAC countries. - Guinea (virtual mission December 2-6, 2024): assisted CBRG to resume submission of FSIs to STA; adoption of new FSI templates consistent with the 2019 FSIs Compilation Guide for deposit-takers; mapping of income/expense statements, balance sheet, memorandum items and supervisory series into new template; helped prepare accompanying metadata for posting. - BSA capacity-building results: - FSSF supported three training workshops on BSA with a total of 119 participants. - All trainings met the minimum requirement of a 15 percent learning gain (difference between pre and post quiz). - At least half of the participants achieved the minimum target of 60 percent on the post-course test. - Selected statistical compilation improvements reported (FY2025): - Strengthened FSI compilation methodology in Guinea. - A new dataset compiled and disseminated publicly in Samoa. - Improved periodicity, timeliness, and consistency of data in Burundi, COBAC, and Mauritania. - Strengthened MFS and GFS compilation methodology in El Salvador and Kosovo, respectively. - Ensured source data adequacy for MFS compilation in DRC. - New datasets compiled and disseminated to the public in Rwanda and disseminated internally in BEAC and Yemen. - Improved periodicity, timeliness, and consistency of data in Nepal, Bhutan, and South Sudan. *From the IMF: Financial Sector Stability Fund (FSSF) Annual Report, FY2025 (End-April 2025).* ### 4. Mauritania: A virtual mission during October 28–November 8, 2024, assisted Central Bank of ### 4–23: FSSF missions and workshops on FSIs, MFS, ESS, BSA, and GFS (Mauritania to Zambia) ### FSIs missions and regional workshops - Mauritania (virtual mission, October 28–November 8, 2024) - Assisted Central Bank of Mauritania (BCM) in improving compilation of FSIs based on the IMF’s 2019 FSIs Compilation Guide. - BCM does not report FSIs to STA for dissemination on the IMF website. - Notable challenges: heterogeneity of banks’ reporting systems causing data collection and processing issues. - TA supported adoption of Bank Supervision Application (BSA) for reporting data to BCM by commercial banks. - Next steps: once BSA data become available, a TA mission to develop bridge tables to compile FSIs and monetary data will be needed. - Samoa (virtual FSIs mission, May 13–17, 2024) - Created bridge tables from call report forms to compile FSIs for deposit takers and OFCs. - Assisted in compiling new FSIs and filling new metadata templates for dissemination. - Identified and corrected a data reporting misclassification in commercial real estate loans. - Noted high exposure of Samoan banks to the real estate sector relative to other countries in the Asia and Pacific region. - Six regional virtual workshops on FSIs for OFCs (two-day workshops, March–April 2025) - Benefitted about 450 participants from central banks and other institutions supervising OFCs from 104 jurisdictions, including those from 47 LLMICs. - Covered regions: Africa; Asia and the Pacific Region; Europe; Middle East; the Caucasus and Central Asia; and the Western Hemisphere. - Workshops for Europe, Middle East, and the Western Hemisphere were co-funded by the IMF Regional Office in Riyadh (for the Middle East) and IMF’s own funding. - Objectives: - Familiarize participants with compilation of FSI data for OFCs as prescribed by the 2019 FSIs Guide. - Highlight the significance of OFCs for financial sector intermediation and stability and the analytical value of FSIs of OFCs for financial sector surveillance. - Encourage compilation and reporting of FSIs of OFCs and accompanying metadata for dissemination. ### BSA-MFS missions and outcomes - Work plan: Five CD activities approved; one added to meet emerging demand. - DRC (in-person MFS, July 01–12, 2024) - Assisted BCC in compiling MFS based on the IMF’s 2016 Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG). - Recommendations: - Develop a new bridge table combining the balance sheet and auxiliary accounts for central bank accounts (1SR). - Complete overhaul of the 2SR bridge table for accounts of ODCs to facilitate bank source data controls and align mapping with new bank reporting statements developed in 2018. - Gradual approach: (i) adapt 2022 FSI bridge table to include statements for monetary statistics; (ii) map bridge table to 2SR using a relational database format; (iii) adapt application program to transfer bank source data to the FSI bridge table. - BCC committed to resume regular data reporting to STA, paused since 2022. - Rwanda (in-person MFS, July 29–August 9, 2024) - Assisted NBR to broaden MFS coverage to include OFCs and compile OFCs Survey aligned with MFSMCG. - Discussed development of a BSA matrix with full financial sector coverage and additional external, fiscal, and real sector data. - Addressed data consistency between central bank, ODCs, and OFCs; integrated MFS (stocks, transactions, other flows); provided hands-on training. - Result: NBR started submitting OFCs data to STA in December 2024. - BEAC (in-person MFS, March 10–21, 2025) - Explored ways to resume regular reporting of MFS and assisted BEAC in developing a sustainable solution for producing monetary statistics. - Improvements targeted: - Methodological: sectoring and classification of financial assets. - Technical: automating data extraction and processing for central bank and commercial banks. - Strengthening data exchange framework between BEAC and COBAC. - Recommendations and initiatives: - Develop new bridge table based on central bank’s detailed trial balance and create a tool to automatically identify newly created accounts each month for central bank accounts (1SR). - Initiated development of new SPECTRA-based sectoral balance sheet for ODCs (2SR) for CEMAC member countries using a relational database format to support automation. - El Salvador (in-person MFS, January 27–31, 2025) - Assisted Central Reserve Bank of El Salvador in reviewing and improving MFS quality focusing on: - IMF accounts, particularly on-lending transactions to government and discrepancies between IMF and central bank records. - Discrepancies in central bank balance sheet. - Significant changes in historical series for other depository corporations starting in January 2024. - Overall quality of nonbank financial intermediaries’ data. ### BSA-IIP missions (ESS) - Work plan: Three activities approved; Malawi placeholder replaced by South Sudan. - Nepal (in-person TA on ESS, June 10–21, 2024) - Assisted NRB implementing BPM6 framework. - Confirmed conversion matrix for transition to BPM6 format; noted need for significant improvement in alignment of data compilation methodology with BPM6. - Recommendations on coding list, reporting form, and data validation procedures for the new International Transactions Recording System (ITRS), which is run in parallel and will replace the current system in August 2024. - Assisted compilers in reviewing priority development areas for the next two years; provided hands-on training on insurance and construction services. - South Sudan (in-person TA on ESS, April 28–May 9, 2025) - Assisted Bank of South Sudan compilers to construct ESS stock indicators, review revised ITRS, and examine data compilation and reporting procedures. - Advised on current balance of payments issues and provided hands-on training. - Bhutan (in-person TA on ESS, March 5–18, 2025) - Assessed collection practices to reduce errors and omissions; discussed informal trade and crypto assets; provided training. - Identified sources of errors and omissions: incomplete transaction coverage, inadequate methods, limited data granularity, and misclassifications. - Recommended actions included in mission’s action plan. - Noted RMA introduced a Data Warehouse and Bhutan TradeFin Net systems to enhance ESS compilation (in early development); recommended expanding systems to reconcile discrepancies between export/import data from the Department of Revenue and Customs and RMA banking information. ### BSA-GFS mission - Kosovo (in-person mission, April 2025) - Supported development of financial accounts of general government sector, with emphasis on the balance sheet. - Facilitated compilation of all financial instruments and historical data, building on progress from February 2023 mission. - Continued collection of financial statements for publicly owned enterprises for sector classification. - Noted Memorandum of Understanding signed in August 2024 among Ministry of Finance Labor and Transfers, Kosovo Agency of Statistics, and Central Bank of Kosovo designating the Statistics Agency as lead compiler and coordinator of GFS. ### BSA cross-cutting workshops and training - CCAMTAC BSA workshop (in-person, August 26–30, 2024, Almaty, Kazakhstan) - Twenty-three participants from nine jurisdictions (four FSSF‑eligible) representing central banks, national statistical institutes, and ministries of finance. - Objectives: familiarize MFS, ESS, and GFS compilers with BSA usefulness for identifying vulnerabilities and systemic risks and guiding macrofinancial surveillance. - Covered lectures on BSA framework and source data; hands-on exercise to produce a BSA matrix for a sample country; group presentations analyzing risks and vulnerabilities. - Introduced BSA tool using real country data for Georgia, Kazakhstan, and Uzbekistan. - Asia Pacific BSA workshop (in-person, November 4–8, 2024, IMF Singapore Training Institute) - Twenty-nine participants from 18 countries (11 FSSF eligible) representing central banks, national statistical institutes, and ministries of finance. - Objectives mirrored CCAMTAC workshop: familiarize MFS, ESS, and GFS compilers with BSA and its analytical usefulness. - BSA training course at IMF Headquarters (February 5–14, 2025) - Brought together 39 MFS, ESS, and GFS compilers from 39 countries. - Course components: lectures on BSA framework and source data; hands-on exercise to produce a BSA matrix for a sample country; group presentations analyzing risks and identifying data gaps and plans. - Emphasized need to enhance data sources and expand sector coverage, particularly for nonfinancial corporations, general government, and households. - Participant satisfaction: overall course rating of 4.9 (out of 5) with high marks for course value, content, and methods. ### STA participation in Financial Sector Stability Reports (FSSRs) - Somalia (STA participated remotely in FSSR main mission, August 19–30, 2024) - STA met with CBS departments to discuss status of compilation of FSIs and MFS, including balance sheet data for IIP and GFS. - Agreed on a workplan with specific activities for authorities to bridge data gaps and ensure reliable and comprehensive financial sector statistics for assessing financial stability risks and vulnerabilities. - Kenya (STA participated in-person in FSSR main mission, November 2024) - Focused on enhancing data quality, granularity, and expanding financial sector coverage to improve monitoring and risk assessment. - Identified needs: - Increase frequency and expand coverage of FSIs to other DTs and non‑DT financial institutions. - Improve source data quality and granularity and expand coverage of other depository corporations and OFCs to improve BSA analysis. - Agreed workplan includes ESS and GFS improvements to ensure reliable and comprehensive financial sector statistics. - Papua New Guinea (STA participated in-person in FSSR main mission, August 19–30, 2024) - Met with National Bank of Papua New Guinea Statistics Department to discuss MFS, FSI, IIP, and GFS issues. - Developed and agreed on a workplan covering specific improvements to be implemented as part of FSSR deliverables, in coordination with MCM. - Madagascar (STA participated in-person in FSSR main mission, November 12–22, 2024) - Identified gaps and deviations in definitions used in financial sector statistics and their timely dissemination. - Developed and agreed a workplan to support the central bank under FSSR to ensure availability of reliable and comprehensive statistics for assessing financial stability risks and vulnerabilities. - Vanuatu (STA participated remotely in FSSR mission, November 25–December 4, 2024) - Discussed status of compilation of FSIs, MFS, IIP, and balance sheet data from GFS with RBV departments. - Provided overview of current reporting framework, identified key areas for improvement, and laid groundwork for future TA in MFS, FSIs, and BSA. - Zambia (STA participated remotely in FSSR scoping mission) - Led meeting with Bank of Zambia Statistics Team on FSIs, MFS, and IIP. - Discussed needs: - Enhance FSIs for DTs and expand coverage to OFCs, nonfinancial corporations, and households. - Review MFS compilation and enhance coverage to include OFCs. - Assess quality of underlying data for compilation of a BSA matrix table. - Aim: ensure availability of reliable and comprehensive financial sector statistics for assessing financial stability risks and vulnerabilities. *Source: FSSF Annual Report FY2025 (section covering missions and workshops 4–23).* ### Appendix IV. Multi-Y ear FSM Pipeline ### Appendix IV. Multi‑Year FSM Pipeline ### CD Activities on FSIs — Endorsed and Conducted during FY2018–25 - FY2018–19: 9 - FY2020: Change –2; Total 3 - FY2021: Change +7; Total 14 - FY2022: Change +9; Total 16 - FY2023: Change +2; Total 16 - FY2024: Change +1; Total 15 - FY25: Total 11 - Notable mission adjustments and cancellations noted in the Appendix: - The planned FSI mission to Haiti was replaced by an MFS mission; the planned mission to Kiribati was canceled due to data confidentiality issues. - The planned missions to Indonesia, Nepal, Papua New Guinea, and Sri Lanka were postponed to FY2022. - The planned missions to Papua New Guinea, Timor‑Leste, Uzbekistan, and Sri Lanka are postponed to the next work plan. - The planned missions to Timor‑Leste, Uzbekistan and Sri Lanka are postponed to the next work plan. - The planned missions to Uzbekistan and Sri Lanka are postponed to the next work plan as regional placeholders. - Regional and workshop activities tracked as endorsed or conducted (examples listed in the Appendix): AFR Webinar, APD Webinar, JVI Webinar, MCD Webinar, SARTTAC Webinar, STI Webinar, regional AFR/APD/MCD/WHD workshops, and multiple country‑specific FSI missions and placeholders. ### CD Activities on BSA — Endorsed and Conducted during FY2018–25 - FY2018–19: Total 17 - FY2020: Change –1; Total 12 - FY2021: Change +7; Total 23 - FY2022: Change +7; Total 20 - FY2023: Change +1; Total 13 - FY2024: Change +1; Total 16 - FY2025: Total 18 - Notes on mission types and adjustments: - The planned MFS mission to Ethiopia was canceled. The IIP mission to Liberia and the MFS mission to Nepal were delivered in FY2020 instead of FY2021 on authorities’ request. - Includes FSSR missions in several years; STA participation in MCM FSSR missions is decided on a case‑by‑case basis and not necessarily specified at mission level in the STA work plan. - For FY2023, the planned WHD Workshop, the planned MFS mission to Bolivia, Nigeria, Sudan, and the planned IIP mission to DRC were canceled. - For FY2024, planned multisector mission to Ghana and planned IIP mission to Nigeria were canceled. Three planned MFS missions were rolled over to early calendar year 2025 under Phase II (the Philippines and Vietnam as APD placeholders and Eswatini as AFR placeholder, respectively). - Regional workshops and mission modalities reported (examples listed in the Appendix): AFR/MCD Workshop, APD Workshop, EUR/MCD Workshop, Anglophone AFR BSA Workshop, Francophone AFR BSA Workshop, APD BSA Workshop, MFS, IIP, GFS, FSSR activities across multiple countries. ### FY26/27 Workplan (May 2025–October 2026) — Planned CD Activities on FSI and BSA - FSI submodules: Approved 9; Additional 8; Total 17 - APD: Approved 4; Additional (blank); Total 4 - AFR: Approved 3; Additional (blank); Total 3 - MCD: Approved 2; Additional (blank); Total 2 - WHD: Approved 0; Additional 1; Total 1 - APD‑SARTAC: Approved 0; Additional 1; Total 1 - Regional webinars: Approved 0; Additional 6; Total 6 - BSA submodules: Approved 9; Additional 7; Total 17 - AFR‑MFS: Approved 3; Additional (blank); Total 3 - APD‑MFS: Approved 2; Additional (blank); Total 2 - MCD‑MFS: Approved 1; Additional (blank); Total 1 - WHD‑MFS: Approved 1; Additional (blank); Total 1 - MCD‑BSA: Approved 1; Additional (blank); Total 1 - EUR‑GFS: Approved (blank) 1; Additional 1; Total 2 - AFR‑IIP: Approved 1; Additional 2; Total 3 - APD‑IIP: Approved 0; Additional 2; Total 2 - APD‑GFS: Approved 0; Additional 1; Total 1 - APD‑PFTAC: Approved 0; Additional 1; Total 1 - FSSR: Approved 0; Additional 4; Total 4 - Aggregate: Approved 18; Additional 20; Total 38 - Potential recipient countries and regional notes (as listed in the Appendix): - Potential FSI recipients include Sri Lanka, Papua New Guinea, Philippines and Vanuatu in Asia and Pacific region; COBAC and Kenya in Africa region; Uzbekistan and Yemen in Middle East and Central Asia; Nicaragua in WHD region. - Potential BSA recipients for MFS TA include Timor Leste and Vietnam (Asia and Pacific); DRC, Eswatini (confirmed) and Guinea (Africa); Lebanon (Middle East and Central Asia); Bolivia (WHD). Potential IIP TA recipients include Bhutan and Nepal (Asia and Pacific); Lesotho, Malawi and Mozambique (Africa). Potential GFS TA includes Kosovo (2 missions) and Philippines. ### Countries that Benefitted Ad‑Hoc Interventions under the FSM in FY2021–25 - Total interventions: 262 - Country counts (selected examples preserved exactly as listed in the Appendix): - Afghanistan 2 - Angola 12 - Bangladesh 6 - Bhutan 11 - Burundi 6 - Cabo Verde 1 - Cambodia 2 - Cameroon 2 - Congo, DR 3 - Djibouti 2 - El Salvador 6 - Eritrea 4 - Eswatini 6 - Ethiopia 3 - Gambia, The 1 - Georgia 11 - Ghana 2 - Guinea 5 - Haiti 3 - Honduras 3 - India 1 - Indonesia 8 - Iraq 2 - Kenya 6 - Kosovo 2 - Lebanon 1 - Lesotho 12 - Liberia 8 - Madagascar 7 - Malawi 4 - Maldives 7 - Micronesia 2 - Moldova 1 - Mongolia 1 - Morocco 1 - Mozambique 10 - Nepal 5 - Nicaragua 1 - Nigeria 4 - Pakistan 4 - Papua New Guinea 4 - Philippines 1 - Republic of Congo 3 - Rwanda 6 - Sierra Leone 9 - Solomon Islands 4 - Somalia 1 - South Sudan 5 - Sri Lanka 2 - Sudan 6 - Tajikistan 6 - Tanzania 2 - Timor‑Leste 2 - Tunisia 3 - Ukraine 1 - Uganda 2 - Uzbekistan 6 - Vanuatu 1 - Vietnam 2 - West Bank and Gaza 3 - Zambia 3 - Special counting note in the Appendix: - The engagements that the East African Community received twice in FY2023 are counted as two for each of partner countries—Burundi, DRC, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. --- _Source: https://www.imf.org/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2025-final-july-2025.pdf_