## FSSF Phase I Achievements Report — Executive Summary (July 2025) ## Source details **Canonical URL:** [FSSF Phase I Achievements Report — Executive Summary (July 2025)](https://www.imf.org/-/media/files/capacity-developement/fssf/fssf-phase-i-achivements-report-final-july-2025.pdf) ## Other formats - [Markdown version](/-/media/files/capacity-developement/fssf/fssf-phase-i-achivements-report-final-july-2025.pdf.md) - [Structured JSON version](/-/media/files/capacity-developement/fssf/fssf-phase-i-achivements-report-final-july-2025.pdf.json) --- ### Introduction and scope - The Financial Sector Stability Fund (FSSF) is a multi-donor thematic fund dedicated to promoting and strengthening financial stability in low- and lower-middle income countries (LLMICs) and Fragile and Conflict-affected States (FCS). - Phase I spanned from November 2017 (FY2018) to December 2024 (FY2025). - Capacity development (CD) activities built on Financial Sector Stability Review (FSSR) diagnostics with two complementary modules: - Financial Reform Module (FRM) — IMF Monetary and Capital Markets (MCM) Department. - Financial Statistics Module (FSM) — IMF Statistics (STA) Department. - FSSRs provide diagnostic reviews to identify gaps and vulnerabilities and to prioritize targeted CD and technical assistance (TA). ### Overall Phase I coverage and delivery - Twenty-six FSSR diagnostics were conducted under Phase I. - Nine bilateral resident advisors were appointed under Phase I. - Over one hundred follow-up TA missions were conducted under FSSF Phase I. - Financial sector regulation and supervision accounted for 42 percent of TA missions during Phase I. - Diagnostics and follow-up TA activity by Fiscal Year (Diagnostics / Follow-up TA): - FY2018: Diagnostics 1, Follow-up TA 0 - FY2019: Diagnostics 6, Follow-up TA 1 - FY2020: Diagnostics 5, Follow-up TA 3 - FY2021: Diagnostics 3, Follow-up TA 13 - FY2022: Diagnostics 4, Follow-up TA 17 - FY2023: Diagnostics 2, Follow-up TA 17 - FY2024: Diagnostics 2, Follow-up TA 35 - FY2025: Diagnostics 3, Follow-up TA 15 - Total: Diagnostics 26, Follow-up TA 101 - Note: TA delivered by the bilateral resident advisors are not included in the FY totals above. ### Key achievements — Financial Reform Module (FRM) - Core outcomes delivered by FRM-funded CD: - Strengthening of risk-based supervision frameworks. - Alignment of regulatory frameworks with Basel standards. - Strengthening of financial sector oversight and establishment of financial stability departments. - Identification of systemic risks and development of macroprudential policy frameworks. - Establishment or upgrading of resolution and crisis management frameworks, including Emergency Liquidity Assistance (ELA) frameworks. - Tangible results aligned with FRM pillars (regulation and supervision; systemic risk oversight; financial safety nets): - Enhanced risk-based supervision (RBS) implemented in Gambia, Kosovo, the DRC, Rwanda, Guinea, Uganda, and Sierra Leone. - On-site and off-site supervision improved in Djibouti, Gambia, the DRC, and Uganda. - Bottom-up stress tests developed in Rwanda and Uganda; stress-testing frameworks expanded in multiple countries including Cabo Verde, Sierra Leone, West Bank and Gaza, Kosovo, Rwanda, Uzbekistan, Sri Lanka, Gambia, Uganda, and Cambodia. - Legislative and regulatory reforms: new or revised banking laws in The Gambia (banking bill approved by Board in 2024), Kosovo (revised banking law in 2024), draft banking law in Guinea; transition to Basel liquidity standards in Kosovo, the DRC, and Zimbabwe; DRC reviews to converge towards Basel III standards; Zimbabwe finalization of Basel III capital regulatory framework. - Resolution and crisis management: operationalization of resolution frameworks in Cabo Verde, Lesotho, Guinea, West Bank and Gaza, Zimbabwe; deposit insurance legislation upgraded or approved in Cabo Verde, The Gambia (Board approval in 2024), Zimbabwe. - Emergency Liquidity Assistance (ELA) regulations enhanced in Uzbekistan and the Republic of Guinea. ### Country example — Democratic Republic of Congo (DRC) Phase I outcomes - Project coverage: financial regulation and supervision; macroprudential policy and systemic risk monitoring; crisis management and financial safety net; financial inclusion and gender dimension of financial stability. - Timeline and outputs: - FSSR report published in September 2022; CD work plan agreed with authorities in March 2023; implementation started in FY2024. - Establishment of a Financial Stability Department (FSD) and a macroprudential unit; revision of law governing Financial Stability Committee (FSC). - Agreements designating CBC as macroprudential authority. - Resident advisor instrumental in defining macroprudential framework, supporting analytical work, overseeing first Financial Stability Review. - Finalization and integration of a bank scoring methodology into supervisory process in FY2025. - Strengthened on-site supervisory practices: enhanced methodology for on-site control of credit files in FY2024 and revised on-site supervisory manual in FY2025. - Several training sessions for junior CBC supervisors on credit file reviews and stress testing. - In FY2024, DRC became the top recipient of TA from MCM. - Collaboration with the World Bank to avoid overlap where the World Bank supported insurance supervision. ### Systemic risk oversight — institutional capacity and tools - Creation of Financial Stability Departments: Uzbekistan (2021), DRC (2024), Cambodia (2024). - Macroprudential units and modelling units established or revamped (Gambia; Sri Lanka). - Development of heatmaps (Cambodia, Uzbekistan), borrower vulnerability indicators, mapping of bank exposures (Lesotho), interconnectedness and contagion analysis frameworks (Sri Lanka). - Macroprudential policy toolkits developed or operationalized: Sri Lanka (countercyclical capital buffer, capital surcharge for systemically important banks, borrower-based measures, sectoral capital measures); Uzbekistan (comprehensive macroprudential framework); Sierra Leone (operationalization). ### Financial stability communication and Financial Stability Reports (FSRs) - Resumption or initiation of FSR publication: Bank of Sierra Leone resumed annual FSR; FSR publication started in Uzbekistan and Cambodia; enhancement of FSRs in The Gambia and Lesotho. - Uzbekistan FSSR follow-up TA: - FSSR report published December 2020; follow-up TA workplan agreed December 2021; first activity March 2022. - Delivery included a dedicated resident advisor for almost two years; stress-testing and ELA TA via STX and HQ missions. - Achievements: macroprudential policy documents, risk heatmap, macroprudential toolkit, launch of FSR publication, strengthened solvency and liquidity stress tests and ELA framework. ### Financial safety nets: resolution, deposit insurance, and ELA - Resolution frameworks operationalized or enhanced in Cabo Verde, Lesotho, Republic of Guinea, West Bank and Gaza, Zimbabwe. - Deposit insurance legal upgrades: Cabo Verde (amendment to Deposit Insurance Act), The Gambia (Deposit Insurance Bill approved by Board in 2024), Zimbabwe enhancements to Deposit Insurance Act. - ELA regulations enhanced in Uzbekistan and the Republic of Guinea; Uzbekistan developed comprehensive ELA regulation and trained central bank staff on ELA simulation exercises. ### Multi-country work: training, online courses, and workshops - Supervisory and Regulatory Online Course (SROC): - Seven editions since a pilot in 2018/19. - Engaged 3,000 participants from 130 countries over seven years. - Nearly one third of participants were from FSSF-eligible countries. - Seventh edition ran until March 21, 2025, with 522 participants from 108 jurisdictions. - Program spans seven months (September to March) and encompasses about 70 hours of learning. - SROC completion rate over seven years around 58 percent; about 95 percent of participants rated it as "very satisfactory" or "satisfactory". - Cyber Risk Supervision Online Course (CRSOC): - 5,565 participants registered since inception; 2,460 active participants; 1,557 passed successfully. - 2,032 registrations were government officials. - Average of 47 percent of total active participants were from FSSF-eligible countries. - Course evaluation for 2022 and 2023 averaged 4.6 out of 5. - Annual cybersecurity workshops: - First in November 2017; eighth in December 2024. - Over 50 countries provided support to attend. ### Key statistics module (FSM) activities and outcomes - Total activities under the Statistics Module: 446. - FSI Sub-Module: 49 TA missions, 27 regional training workshops, 105 ad-hoc short-term engagements. - BSA Sub-Module: 98 TA missions, 10 regional training workshops, 157 short-term engagements. - TOTAL STE: 105 (FSI) and 157 (BSA) = 262 STE. - Grand total of activities: 446. - FSIs Sub-Module achievements: - Phase I targets achieved or exceeded except: additional LLMICs compiling core FSIs was 27 against target 29. - 27 countries started to compile ‘core’ FSIs. - Number of LLMICs compiling FSIs increased to 77 with the additional 27 countries. - 11 of the 27 countries started reporting FSIs to STA regularly: Djibouti, Democratic Republic of Congo, Eritrea, Liberia, Ethiopia, Jordan, Malawi, Morocco, Mozambique, Somalia, Nepal. - Sierra Leone submitted provisional FSIs to STA for review prior to dissemination. - 15 of the 27 compile FSIs for internal use or provide data only to IMF area department country teams: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo, Cape Verde, Mongolia, South Sudan, Sudan, Timor-Leste, Tunisia, Zimbabwe. - 46 LLMICs supported to compile additional (non-core) FSIs (target 15). - 51 LLMICs implemented the new templates reflecting the IMF’s 2019 FSIs Compilation Guide; 40 of these 51 are already using the new templates to report updated FSIs to the IMF; remaining 11 in process of reporting to STA. - BSA Sub-Module achievements: - 34 LLMICs enhanced compilation of primary statistics underlying the BSA (target 25). - Eight countries compiled primary statistics to generate a BSA matrix for the first time: Angola, Burkina Faso, Cambodia, Guinea, Mongolia, Morocco, the Philippines, Papua New Guinea. - 44 LLMICs improved data in at least one of three topical areas (target 30). - Eleven countries started to report data for the central bank and other depository corporations: Djibouti, Guinea, Jordan, Liberia, Libya, Madagascar, Malawi, Mauritania, Tunisia, Uzbekistan, Zimbabwe. - Nine countries began reporting data for other financial corporations: Angola, Cambodia, Kyrgyz Republic, Morocco, Nigeria, the Philippines, Rwanda, Tunisia, Uzbekistan. - Five countries started to report IIP data: Republic of Congo, The Gambia, Kenya, Madagascar (quarterly), Uzbekistan. - Six countries increased IIP frequency from annual to quarterly: Djibouti, Eswatini, Liberia, Nigeria, Rwanda, Zambia. - Nine countries started to report GFS balance sheet data: Armenia, Burkina Faso, Ethiopia, Georgia, Kosovo, Mozambique, Mongolia, Nepal. - Six countries started to report government balance sheet liability data: Eswatini, Guatemala, Jordan, Lesotho, Madagascar, Papua New Guinea, Zambia. - Seven countries compiled primary statistics to generate a BSA matrix for the first time (listed above). - Country case — Nepal: - FSM support included five TA missions (including an FSSR). - Nepal reports 14 core and seven encouraged FSIs for DTs, two FSIs for OFCs, one FSI for households, and two FSIs for real estate markets on a quarterly basis. - OFCs represent 20 percent of the total financial system assets in Nepal (as identified by the FSSR). - Nepal migrated to the new FSIs reporting templates in 2023. - Nepal started to compile balance sheet data for the budgetary central government and has reported data for 2019-2021 to STA. - Country case — Eswatini: - FSM support included three TA missions (including one FSSR). - Central Bank of Eswatini reported 15 core and five additional FSIs for DTs based on the 2019 FSIs Guide. - Eswatini started to report quarterly IIP based on BPM6 in 2018 and regularly reports government balance sheet liabilities to STA. ### Reach, delivery modalities, and challenges - Entire universe of over 90 FSSF-eligible countries received CD support through TA missions, regional trainings, or ad-hoc short-term engagements. - Nearly 60 LLMICs benefitted from targeted TA missions. - Virtual CD delivery adopted during COVID-19 allowed continuity and became an important modality; in-person TA remained essential for low-capacity countries and FCS. - Challenges and lessons learned: - Human resource and institutional constraints: low capacity, staffing issues, high turnover hindered implementation. - Data availability and usage: absence of data and limited collection capacity impeded data-intensive activities such as stress testing; limited use of nonbank financial institutions data in policy analysis in some countries. - External shocks and security: COVID-19, political instability, and conflicts impeded CD implementation (examples: Sri Lanka, Republic of Guinea, Kosovo, Rwanda, Uganda, West Bank and Gaza). - Resident advisors: continuous presence critical for driving progress and addressing capacity constraints. - Complementarity and coordination: collaboration with World Bank Group and other thematic funds enhanced CD implementation and avoided overlap. ### Emerging topics and demand-driven focus - Emerging areas covered in Phase I include digital money, central bank digital currency (CBDC), regulatory sandboxes (Papua New Guinea), gender-disaggregated data in supervision (DRC), oversight of digital finance and payment service providers (Kenya diagnostic funded under Phase II). - Phase II priorities will continue focus on improving FSI compilation frameworks, expanding coverage to NBFIs, developing consistent BSA primary data including digital money and crypto assets, and tailoring follow-up TA to recipient absorption capacity. ### Program management, evaluation, and Phase II design changes - Independent external evaluation concluded Phase I was well-designed and performed well, recommending renewal. - Phase I originally planned for five years but extended to seven years (FY2018–2025) due to COVID-19 delays; an additional extension of eight months (May–December 2024) granted to facilitate transition. - Phase II commenced in May 2024 for the Financial Reform Module and in January 2025 for the Financial Statistics Module. - Phase II design adjustments based on Phase I lessons: - FRM follow-up TA projects to focus on a relatively small number of workstreams aligned with recipient absorption capacity (e.g., 2-3 workstreams). - Break up follow-up CD into discreet, coordinated and sequenced topical projects where appropriate. - Statistics Module to strengthen linkage with FSSRs and develop country Statistics Module CD implementation roadmaps. - Greater emphasis on capacity assessments before designing follow-up TA. - Strengthen monitoring and reporting of CD implementation through improved RBM logframes, semi-annual monitoring, and development of a Theory of Change. - More flexible approach to annual budgeting under FSSR follow-up Sub-Module and continued multi-country activities. ### Financial contributions, cash flows, and budget execution (Phase I) - Phase I received financial support from nine donor partners: China, Germany, Italy, Luxembourg, Saudi Arabia, Sweden, Switzerland, the United Kingdom, and the European Investment Bank (EIB). - Contributions received from donor partners: US$28.8 million. - Cash inflows into the Thematic Fund totaled US$30.4 million which includes interest earned. - Interest earned (in thousands of US$) by fiscal year: 61, 268, 286, 2, 12, 384, 446, 126; total interest earned 1,584. - Total Cash Available (in thousands of US$) by fiscal year: 8,624; 9,255; 6,768; 3,264; 412; 1,457; 446; 126; total 30,352. - Expenses Paid (in thousands of US$) by fiscal year: 638; 3,117; 4,225; 2,660; 3,592; 5,274; 7,066; 3,119; total 29,692. - Cash Balance (in thousands of US$) by fiscal year: 7,985; 14,123; 16,666; 17,270; 14,091; 10,274; 3,653; 660; ending balance 660. - The unspent balance of US$660K (as of April 2025) represents remaining interest earned; this residual interest will be prorated across donor partners and transferred to Phase II upon Steering Committee endorsement. - Contributions by donor (in thousands of US$): China 3,000; European Investment Bank 1,193; Germany 4,518; Italy 3,592; Luxembourg 3,421; Saudi Arabia 2,000; Sweden 4,412; Switzerland 4,021; United Kingdom 2,611; total contributions shown 28,768. - Approved Budget as of June 2024: Total 30,226 (in thousands of US$). - Current Budget as of April 2025: Total 30,260 (in thousands of US$). - Total Expenses as of April 30, 2025: 29,692 (in thousands of US$). - Remaining Budget: 568 (in thousands of US$). - Budget Execution: 98%. - Trust Fund Management Fee (in thousands of US$): Approved 1,977; Current 1,980; Expenses 1,942; remaining 37. - Major budget line execution (Approved / Current / Expenses / Remaining / Execution (%)): - Direct TA: 17,528 / 17,922 / 17,810 / 112 / 99% - Financial Sector Reform Module: 10,041 / 10,169 / 10,156 / 13 / 100% - Financial Sector Statistics Module: 6,919 / 6,920 / 6,924 / (3) / 100% - Cyber Risks: 568 / 833 / 730 / 102 / 88% - Follow-up TA Country Programs: 12,142 / 11,783 / 11,426 / 357 / 97% - Selected country program budget examples (Current Budget / Expenses / Remaining / Execution %): - Cabo Verde: 235 / 195 / 40 / 83% - Cambodia: 1,293 / 1,281 / 12 / 99% - Democratic Republic of the Congo: 720 / 709 / 11 / 98% - Djibouti: 860 / 744 / 9 / 99% - Gambia: 1,264 / 1,302 / - / 100% - Guinea: 423 / 405 / 17 / 96% - Kosovo: 544 / 491 / 20 / 96% - Lesotho: 131 / 88 / 27 / 77% - Rwanda: 1,004 / 891 / 114 / 89% - Sierra Leone: 1,334 / 1,306 / (25) / 102% - Sri Lanka: 1,209 / 1,209 / - / 100% - Uganda: 986 / 986 / - / 100% - Uzbekistan: 1,132 / 795 / 106 / 88% - West Bank And Gaza: 403 / 403 / - / 100% - Zimbabwe: 605 / 620 / 27 / 96% - Online Training: 245 / 219 / 26 / 89% - FSI Connect Online Training: 90 / 74 / 16 / 83% - Cybersecurity Online Course: 155 / 145 / 10 / 93% - Administrative/Governance Cost: 310 / 236 / 74 / 76% - Steering Committee and Evaluation: 310 / 236 / 74 / 76% ### Programmatic objectives and results summary - Objective 1: FSSR diagnostics completed — Twenty-six FSSR diagnostics completed. FSSR follow-up TA projects approved (except Bangladesh and Nicaragua). - Objective 2: Improved financial sector regulation and supervision — Risk-Based supervision implemented in multiple countries; supervisory practices and legislation strengthened in several countries. - Objective 3: Strengthened capacity of central banks in systemic risk analysis — Stability departments created in Uzbekistan, the DRC, Cambodia; systemic risk tools developed in Sri Lanka, Lesotho, Cambodia, Uzbekistan. - Objective 4: Crisis prevention and inter-agency crisis preparedness — Resolution frameworks and ELA frameworks established or operationalized in multiple countries. - Objective 5: Macroprudential policy frameworks — Significant progress in Sri Lanka, Uzbekistan, Cambodia, Sierra Leone, Gambia, the DRC. - Objective 6: Oversight of FMIs and payment aspects of financial inclusion — Oversight strengthened in Sri Lanka. - Objective 7 and 8: Coverage of FSIs and application of Balance-Sheet Approach — Substantial expansion of FSI coverage (27 additional LLMICs started compiling FSIs; 51 LLMICs implemented new templates), and BSA primary statistics enhancements in 34 LLMICs; seven countries compiled BSA matrix for the first time. ### External evaluation conclusions and high-priority actions (selected) - External evaluation concluded: (i) the FSSF performed well in Phase I; (ii) both Reform Module and Statistics Module were well-designed; (iii) program was relevant, coherent, and well-coordinated with IMF area department activities. - Four high-priority recommendations and related actions: 1. Clearly articulate objectives and purposes of FSSRs; revise FSSR Handbook; ensure engagement of relevant TA providers. 2. Design FRM follow-up CD cognizant of implementation timescales and beneficiary absorption capacity; limit scope to a few workstreams. 3. Break up follow-up CD into discreet, coordinated and sequenced topical projects rather than committing funds up-front. 4. Discuss prioritization of FRM countries in the Statistics Module portfolio; base Statistics Module annual work plans on Area Departments, Reform Module outcomes, authorities’ requests, and STA considerations. - Medium-priority recommendations include strengthening RBM logframes and monitoring, developing a Theory of Change, systematic approach to deploying LTXs and STXs, and strengthening coordination with World Bank and donors at strategic and operational levels. ### Way forward and Phase II priorities - Continued use of FSSR diagnostic as core element; FSSR follow-up TA projects to focus on a relatively small number of workstreams per project and assess recipient absorption capacity. - Continued emphasis on multi-country activities (online tools, webinars, workshops) for complementary capacity building. - Financial statistics priorities: improve compilation frameworks and coverage for FSIs including NBFIs, develop consistent BSA primary data covering digital money and crypto assets, enhance monetary statistics including flow data and corporate and household debt. - Strong pipeline of demand expected under Phase II, focusing on follow-up TA workplans for recently completed FSSR diagnostics, completing remaining Phase I projects, and conducting new diagnostics. - IMF to continue close cooperation with other CD providers to leverage synergies and avoid overlaps. *Source: FSSF Phase I Achievements Report (July 2025).* ### EXECUTIVE SUMMARY ...................................................................................................... ### EXECUTIVE SUMMARY ### INTRODUCTION AND SCOPE - The Financial Sector Stability Fund (FSSF) is a multi-donor thematic fund dedicated to promoting and strengthening financial stability in low- and lower-middle income countries (LLMICs) and Fragile and Conflict-affected States (FCS). - Phase I of the FSSF spanned from November 2017 (FY2018) to December 2024 (FY2025). - The FSSF’s capacity development (CD) activities build on Financial Sector Stability Review (FSSR) diagnostics with two complementary modules: - Financial Reform Module (FRM) — IMF Monetary and Capital Markets (MCM) Department. - Financial Statistics Module (FSM) — IMF Statistics (STA) Department. - The FSSR provides diagnostic reviews to identify gaps and vulnerabilities and to prioritize targeted CD and technical assistance (TA). ### OVERALL PHASE I COVERAGE AND DELIVERY - Twenty-six FSSR diagnostics were conducted under Phase I. - Nine bilateral resident advisors were appointed under Phase I. - Most diagnostics received follow-up TA projects across the FRM pillars. - Over one hundred follow-up TA missions were conducted under FSSF Phase I. - Financial sector regulation and supervision accounted for 42 percent of TA missions during Phase I. ### KEY ACHIEVEMENTS — FINANCIAL REFORM MODULE - Core outcomes delivered by FRM-funded CD: - Strengthening of risk-based supervision frameworks. - Alignment of regulatory frameworks with Basel standards. - Strengthening of financial sector oversight and establishment of financial stability departments. - Identification of systemic risks and development of macroprudential policy frameworks. - Establishment or upgrading of resolution and crisis management frameworks, including Emergency Liquidity Assistance (ELA) frameworks. - Delivery channels and tools: - FSSR diagnostics followed by sequenced, prioritized TA projects jointly developed with authorities and IMF area department teams. - Deployment of bilateral resident advisors to central banks in recipient countries to tailor surveillance and program design to on-the-ground capacity. ### KEY ACHIEVEMENTS — FINANCIAL STATISTICS MODULE - FSM outcomes in recipient countries: - More than 51 countries introduced the new compilation methodology for Financial Soundness Indicators (FSIs). - 34 countries enhanced their primary statistics for compilation of Balance Sheet Approach (BSA) matrices. - 43 countries addressed topic-specific data issues. - FSM focus areas: - Strengthening compilation methodologies and coverage of FSIs. - Enhancing underlying data for compilation of the BSA matrix. - Expanding coverage to non-bank financial institutions (NBFI) and concentration and distribution measures. - Developing consistent source data for all BSA primary statistics, including emerging topics such as digital money and crypto assets. ### INTEGRATION WITH IMF SURVEILLANCE AND LENDING - Close integration of FSSF-financed CD with IMF surveillance and lending increased CD impact: - FSSR agendas were sequenced and prioritized jointly with authorities and IMF country teams. - FSSRs contributed to institutional capacity and policy frameworks that reinforced surveillance policy advice and lending programs. - IMF arrangements and surveillance activities supported follow-through on FSSR-related reforms. - Presence of FSSF-funded resident advisors enhanced tailoring of surveillance and program design and increased policy traction. - Broad coverage of FSSR material in IMF staff reports increased visibility of CD efforts. ### PROGRAM MANAGEMENT, EVALUATION, AND TRANSITION - The independent evaluation of Phase I concluded the program was well-designed and performed well, recommending renewal. - Phase I duration was originally planned for five years but was extended to seven years (FY2018–2025) in response to COVID-19 related delays; an additional extension of eight months (May–December 2024) was granted to facilitate transition. - Phase II commenced in May 2024 for the Financial Reform Module and in January 2025 for the Financial Statistics Module. - Phase II design adjustments based on Phase I lessons: - FRM follow-up TA projects will focus on a relatively small number of workstreams aligned with recipient absorption capacity. - FSM will continue improving FSI compilation frameworks, expanding coverage to NBFIs, and developing consistent BSA primary data including digital money and crypto assets. - Continued use of multi-country activities and tailored resident-advisor support where needed. ### IMPACTS, DEMAND, AND CAPACITY BUILDING - Feedback from country authorities on financial sector CD was consistently positive, and demand for additional CD remained strong. - Phase I supported knowledge dissemination through online and face-to-face training, including cybersecurity and cyber risk supervision topics. - The complementarity of FRM and FSM proved crucial to ensure that policy advice and statistical foundations reinforced each other. *Source: FSSF Phase I Achievements Report — Executive Summary (July 2025).* ### 10. Integration between FSSR CD and surveillance and lending activities was central to ### 10. Integration between FSSR CD and surveillance and lending activities was central to ### Integration with IMF surveillance and lending - The reform agenda under FSSF Phase I was jointly prioritized with authorities and IMF area departments country teams, enhancing policy traction and follow-up. - FSSR diagnostics framed CD strategy and financial sector priorities in recipient countries under IMF-supported arrangements; IMF arrangements and surveillance supported follow-through of FSSR-related reforms. - More than half of the twenty-six diagnostics conducted under FSSF Phase I took place while recipient countries were either already or became engaged in an IMF lending arrangement within the subsequent three years. - All beneficiary countries were engaged through surveillance. - The presence of FSSF-funded resident advisors in the field helped tailor surveillance and program design based on on-the-ground capacity, increasing impact and traction. - The wide coverage of FSSR in staff reports increased visibility of FSSF-funded CD activities and reinforced integration between CD and surveillance. - FSSR recommendations informed surveillance policy advice and acted as a conduit for financial sector reforms embedded in lending arrangements. - Examples of integration in program arrangements: - Enhancing financial sector supervision and regulation was a structural benchmark under the Extended Credit Facility (ECF) arrangements for the Democratic Republic of the Congo (DRC) and Sierra Leone, aligning with FSSR recommendations. - Memorandums of economic and financial policies for DRC, Cabo Verde and Nepal include implementation of FSSR recommendations. - FSSR follow-up TA was aligned with the objectives of Nepal’s ECF program. - FSSR diagnostics shaped Article IV consultations and CD priorities; nearly all staff reports produced after diagnostics included FSSR-related information. - 2019 FSSR steered key financial sector policy recommendations for the Gambia 2021 Article IV consultation. - The 2024 Article IV consultation and country engagement strategy for the DRC outlined CD priorities grounded in the 2022 FSSR diagnosis. - The FSSR diagnostic helped design CD strategy with the authorities in the context of the 2021 Article IV consultation in Sri Lanka. ### Diagnostics and follow-up TA activity (by Fiscal Year) - Table of Diagnostics and Follow-up TA: - FY2018: Diagnostics 1, Follow-up TA 0 - FY2019: Diagnostics 6, Follow-up TA 1 - FY2020: Diagnostics 5, Follow-up TA 3 - FY2021: Diagnostics 3, Follow-up TA 13 - FY2022: Diagnostics 4, Follow-up TA 17 - FY2023: Diagnostics 2, Follow-up TA 17 - FY2024: Diagnostics 2, Follow-up TA 35 - FY2025: Diagnostics 3, Follow-up TA 15 - Total: Diagnostics 26, Follow-up TA 101 - Note: TA delivered by the bilateral resident advisors are not included. ### Key CD achievements under Phase I (aligned with the Financial Reform Module pillars) - Pillars: financial sector regulation and supervision; systemic risk oversight; financial safety nets. - Tangible results from FSSF-financed CD: - Enhanced risk-based supervision frameworks. - Establishment of financial stability departments and adoption of macroprudential policy tools. - Upgrading of bank recovery and resolution frameworks. - Multi-country online courses and workshops produced important results. ### Regulation and supervision — findings and outcomes - Risk-based supervision (RBS) advances: - Pilot risk-based bank examination in Gambia. - Transition to RBS for insurance sector in Kosovo. - Methodology for a bank scoring system developed and finalized in the Democratic Republic of Congo (DRC). - Rwanda and Uganda: improvement and operationalization of RBS. - Guinea: RBS implementation focused on enhancing the supervisory review process (SRP) and introduction of early warning indicators. - Bank of Sierra Leone: upgraded supervisory processes based on FSSR follow-up work. - On-site and off-site supervision: - Resumption of on-site inspections in Djibouti under FSSF-appointed resident advisor. - The Gambia: supervisory reporting template and dashboard for quarterly off-site analysis developed with FSSF-financed bilateral resident advisor. - DRC: upgraded methodology for on-site control of credit files. - Uganda: improved off-site analysis for banks and NBFIs, alignment of corporate governance guidance with Basel standards, updated risk-based licensing. - Stress testing and supervisory tools: - Bottom-up stress test tool developed in Uganda to reflect risk profiles of the five largest banks. - Rwanda: streamlined reporting process for bottom-up stress tests and standardized supervisory reports. - Legislative and regulatory reforms: - Central Bank of The Gambia completed a new banking bill approved by its Board in 2024. - Central Bank of Kosovo revised the banking law in 2024. - Draft new banking law developed in Guinea. - Alignment with Basel standards and other regulatory upgrades: - Transition to Basel liquidity standards in Kosovo, the DRC, and Zimbabwe. - DRC: reviews of core banking regulations (related-party lending, capital requirements, credit risk weights) to converge towards Basel III standards. - Guinea: revisions to definition of own funds and capital requirement calculations to align with Basel II and Basel III standards. - Zimbabwe: finalization of Basel III capital regulatory framework and enhancement of consolidated supervision. - Bank of Sierra Leone: issuance of guidelines on corporate governance, credit risk management, enterprise risk management and FX Lending. ### Box 2 — Democratic Republic of Congo (DRC) Phase I outcomes (summary) - Project coverage: financial regulation and supervision; macroprudential policy and systemic risk monitoring; crisis management and financial safety net; financial inclusion and gender dimension of financial stability. - FSSR report published in September 2022; CD work plan agreed with authorities in March 2023; implementation started in FY2024. - Pre-project gaps: CBC lacked explicit macroprudential mandate and operational capacity; financial stability function not established; on-site supervision and regulatory framework outdated; stress testing not used. - Phase I achievements: - Establishment of a Financial Stability Department (FSD) and a macroprudential unit; revision of law governing Financial Stability Committee (FSC). - Agreements between Ministry of Finance and CBC designating CBC as macroprudential authority. - Resident advisor pivotal in defining macroprudential framework, supporting analytical work, overseeing the first Financial Stability Review. - Regulatory reforms aligned with Basel III standards with simplified approaches where necessary. - Finalization and integration of a bank scoring methodology into supervisory process in FY2025. - Strengthened on-site supervisory practices; enhanced methodology for on-site control of credit files in FY2024 and revised on-site supervisory manual in FY2025. - Several training sessions for junior CBC supervisors on credit file reviews and stress testing. - In FY2024, DRC became the top recipient of TA from MCM. - Close collaboration with the World Bank to avoid overlap, especially where the World Bank supported insurance supervision. ### Systemic risk oversight — findings and outcomes - Institutional capacity and organizational setup: - Creation of Financial Stability Departments: Uzbekistan (2021), DRC (2024), Cambodia (2024). - Macroprudential unit established in the Gambia to conduct stress testing and develop a financial stability report. - New modelling unit in macro surveillance department in Sri Lanka revamped stress-test framework. - Update of National Bank of Cambodia’s Financial Stability Committee (FSC) mandate in early 2024 elevated financial stability work. - Staff from new units received FSSF-financed financial stability trainings. - Tools and data improvements: - Development of heatmaps (Cambodia, Uzbekistan). - Indicators to assess borrower vulnerability. - Mapping of local banks’ exposure to other financial institutions (Lesotho). - Interconnectedness and contagion analysis frameworks fully implemented in Sri Lanka. - Strengthened data collections to better monitor systemic risks (Sri Lanka, Lesotho). - Stress testing frameworks expanded and upgraded: - Cabo Verde, Sierra Leone: moved to multi-period scenario-based frameworks from simple sensitivity analyses. - West Bank and Gaza: multi-factor stress test to assess banking sector resilience. - Kosovo, Rwanda: advanced suite of stress-testing models. - Uzbekistan, Sri Lanka: strengthened solvency and liquidity stress tests. - Gambia and Uganda: strengthened stress testing capacity. - Cambodia: development of satellite regression models and adaptation of IMF solvency stress test toolbox; multiple training sessions provided. - Macroprudential policy frameworks and toolkits: - Sri Lanka: development of countercyclical capital buffer, capital surcharge for systemically important banks, borrower-based measures, and sectoral capital measures; legislation granting strong macroprudential powers to central bank and clear decision-making mechanisms. - Uzbekistan: establishment of a comprehensive macroprudential framework where none existed. - Sierra Leone: operationalization of a macroprudential policy framework. - Cambodia: enhancement of systemic risk analysis and preparation and publication of a macroprudential policy strategy document with follow-up TA support. *FSSF Phase I Achievements Report* ### 23. Financial stability communication was strengthened in several countries through the ### 23. Financial stability communication was strengthened in several countries through the development and publication of financial stability reports ### Financial stability reports: country-level outcomes - The Bank of Sierra Leone resumed the practice of regularly preparing and publishing an annual Financial Stability Report (FSR) thanks to the FSSF-funded CD project (FSSF Phase I). - The publication of the FSR was started in Uzbekistan and Cambodia; the FSR has become a very important communication channel on financial stability issues for the National Bank of Cambodia (FSSF Phase I). - The enhancement of the FSR in The Gambia and its review in Lesotho were substantial achievements under FSSF Phase I. ### Box 3 — FSSR in Uzbekistan (FSSF follow-up TA project) - Objective: support the Central Bank of Uzbekistan (CBU) in strengthening its financial sector stability framework. - Timeline and milestones: - FSSR report published in December 2020. - Follow-up TA workplan agreed with the authorities in December 2021. - First activity was in March 2022. - Project focus areas: - (i) developing a macroprudential policy framework at the CBU, - (ii) strengthening stress testing methodologies, - (iii) enhancing the emergency liquidity assistance (ELA) arrangements. - Context: reforms launched in 2017 aimed at reducing the share of government in ownership and funding of financial institutions via privatization and greater reliance on private financing; systemic financial risk analysis and macroprudential policymaking were not existent in Uzbekistan in 2021. - Delivery modalities: - TA on macroprudential policy delivered through a dedicated resident advisor placed at the CBU’s Financial Stability Department for almost two years. - TA on stress testing and ELA delivered through short term experts (STX) and HQ staff missions. - One mission in early 2022 was fully virtual due to COVID-related travel restrictions; all other missions in 2023-2024 were done in-person. - Major program achievements: - Formulation and adoption of several key documents defining the conduct of macroprudential policy. - Strengthening of systemic risk analysis with the development of a risk heatmap. - Establishment of an effective macroprudential policy toolkit. - Launch of publication of the Financial Stability Report. - Strengthening of solvency and liquidity stress tests and ELA framework. - Coordination: MCM staff maintained close coordination with partner agencies, including World Bank, International Finance Corporation, Asian Development Bank, Alliance for Financial Inclusion, several partner central banks, and the recently established IMF Caucasus, Central Asia, and Mongolia TA Center. ### Financial safety nets: resolution, deposit insurance, and ELA - FSSF Phase I CD projects assisted in reviewing and enhancing main components of the financial safety net in many countries; establishment and operationalization of frameworks for bank resolution, ELA and deposit insurance were major achievements (FSSF Phase I). - Resolution frameworks and operationalization: - Operationalization of the banking resolution framework and assistance with resolution planning and drafting resolution manuals/guidelines in Cabo Verde and Lesotho (FSSF Phase I). - Crisis management framework strengthened and Special Resolution Regime (SRR) operationalized in the Republic of Guinea and West Bank and Gaza, aligned with international standards (FSSF Phase I). - In Zimbabwe, the FSSR follow-up TA project supported incorporation of resolution powers into the draft Zimbabwe Banking Act in accordance with the Financial Stability Board (FSB) Key Attributes; a TA mission operationalized the resolution regime covering resolution and recovery planning, resolvability assessments, stabilization options, escalation frameworks and resolution execution (FSSF Phase I). - Deposit insurance: - Legal framework upgraded in Cabo Verde through an amendment to the Deposit Insurance Act (FSSF Phase I). - The Deposit Insurance Bill was approved by the Board of the Central Bank of The Gambia in 2024 (FSSF Phase I). - FSSR follow-up TA work supported the Reserve Bank of Zimbabwe in enhancing its Deposit Insurance Act (FSSF Phase I). - Emergency Liquidity Assistance (ELA): - ELA regulations were enhanced in Uzbekistan and the Republic of Guinea (FSSF Phase I). - Uzbek authorities developed a comprehensive ELA regulation clarifying solvency assessment, interest rates, maturity, collateral, and conditionality; central bank staff were trained to conduct an ELA simulation exercise (FSSF Phase I). - In the Republic of Guinea, the review examined the legal basis, instructions, and internal procedures and focused on broadening the base of eligible collateral for monetary policy to include private debt and receivables (FSSF Phase I). ### Box 4 — FSSR in West Bank and Gaza (WBG) - Diagnostic conducted in October 2018; FSSR report published in May 2019; program implementation started in December 2019. - FSSR follow-up project focus: - (i) Strengthening bank regulatory and supervisory frameworks; - (ii) Improving systemic risk and interconnectedness analysis and stress testing; - (iii) Enhancing resolution, crisis management, and safety nets. - Implementation notes: - COVID-19 pandemic and the Israel-Gaza conflict narrowed focus areas, but substantive progress achieved in banking resolution. - At project launch, crisis preparedness and management elements were fragmented; a comprehensive crisis management plan was lacking; key resolution tools such as bridge bank authority were absent. - MCM coordinated with IMF Legal Department (LEG) to design a statutory special resolution regime consistent with international standards and proportionate to the WBG environment. - Missions included review of the SRR, governance of resolution function and separation from supervision, desk review of resolution-related banking law amendments, enhancement of crisis management plan, and drafting of a resolution manual to operationalize resolution tools. - Delivery modalities: in-person, desk review and virtual engagements early in the pandemic. - Outcomes: - Staff allocations to resolution completed; new resolution regime completed; resolution plans prepared for systemic domestic banks. - Coordination with deposit insurance scheme enhanced to support resolution measures. - In systemic risk analysis and stress testing, assistance led to development of stress testing capabilities integrated into PMA’s macroprudential surveillance framework; advice to move from single-factor to multi-factor stress testing led to a multi-factor stress test finding that multiple concurrent shocks would deplete capital in several banks below minimum requirements, triggering prompt discussions on capital options and complementary COVID-19 measures (e.g., lowering liquidity requirements and loan deferrals). - Overall: FSSR TA project equipped the Palestine Monetary Authority (PMA) with a banking resolution framework and a stress testing tool despite operational challenges (FSSF Phase I). ### Testimonies from governors (selected extracts) - Governor Ismaili, Central Bank of Kosovo (CBK): - Acknowledged significant progress implementing FSSR recommendations from 2019 with IMF support across governance, decision-making, committees, organizational structure, supervisory approach, macroprudential framework, stress-testing, data infrastructure, statistics, and central bank operations. - Highlighted transition toward a more risk-based supervisory approach and need for continued capacity-building in SREP implementation, crypto asset regulation, ELA framework, central bank operations, and macroeconomic modeling (CBK testimony included in FSSF Phase I report). - Governor Stevens, Bank of Sierra Leone: - Expressed appreciation for IMF TA in oversight of Financial Market Infrastructures, ELA, and Macroprudential Policy framework; credited stress testing TA with strengthening resilience to potential financial shocks and improving ability to identify and mitigate vulnerabilities (Bank of Sierra Leone testimony included in FSSF Phase I report). ### Multi-country work: training, online courses, and workshops - Cyber and supervisory online courses and workshops delivered under FSSF Phase I included: - Supervisory and Regulatory Online Course (SROC) delivered jointly by the IMF and the Financial Stability Institute of the BIS. - Cyber Risk Supervision Online Course (CRSOC). - Eight annual cyber security workshops organized during Phase I. - SROC program details: - Structure: Financial Stability Institute Connect online tutorials, IMF case study materials, and seven live webinars co-hosted by MCM and FSI of the BIS. - Duration and workload: program spans seven months, from September to March, and encompasses about 70 hours of learning. - Target audience: participants from authorities subject to the FSSR, mainly targeted LLMICs; EMDEs also comprised a significant portion of the audience. - History and reach: - Seven editions since a pilot in 2018/19. - Engaged 3,000 participants from 130 countries over seven years. - Nearly one third of participants were from FSSF-eligible countries. - Seventh edition ran until March 21, 2025, with 522 participants from 108 jurisdictions. - Latest webinar (Fintech and Financial Stability) took place on February 20, 2025; participants completed their studies by March 20, 2025. - Outcomes and evaluations: - SROC completion rate over seven years was around 58 percent. - Course evaluations: about 95 percent of participants rated it as "very satisfactory" or "satisfactory". - CRSOC program details: - Target: intermediate-level non-technical supervisors; structured in five modules with a practical case-study assignment. - Reach and performance: - 5565 participants registered since inception. - 2460 active participants. - 1557 participants passed the course successfully. - 2032 registrations were government officials. - Average of 47 percent of the total active participants were from FSSF-eligible countries. - Example blended-learning use case: in one country that suffered a cyber incident, 184 participants enrolled and 83 successfully completed the course. - Course evaluation: - For 2022 and 2023 the course evaluation stood at an average of 4.6 out of 5 (five-point scale). - Annual cybersecurity workshops: - First annual workshop rolled out in November 2017. - Eighth annual workshop held in December 2024. - Workshops updated cyber risk supervisors from LLMICs on cybersecurity developments and enhanced capacity; over 50 countries were provided support to attend. *Source: FSSF Phase I achievements report (July 2025).* ### 34. Phase I CD support under the Statistics Module has been impactful and has resulted in ### Phase I CD support under the Statistics Module has been impactful and has resulted in ### Overview - The FSSF Phase I achievements report states that CD support under the Statistics Module produced significant improvements in the availability and quality of financial sector statistics in beneficiary LLMICs in support of financial stability and macro-financial policies. - CD support under two Sub-Modules strengthened capacity to provide reliable financial sector statistics for assessing financial stability risks and vulnerabilities, resulting in improved compilation methodologies and coverage of Financial Soundness Indicators (FSIs) and/or enhancements in underlying data for the Balance Sheet Approach (BSA) matrix. ### Activities and modalities - The report documents a total of 446 activities conducted under the Statistics Module: - FSI Sub-Module: 49 TA missions, 27 regional training workshops, and 105 ad-hoc short-term engagements. - BSA Sub-Module: 98 TA missions, 10 regional training workshops, and 157 short-term engagements. - Annual breakdown (summarized from Table 2) totals: - Total TA Missions: 49 (FSI) and 40 (BSA) — combined TA missions across modalities shown in table total 89 TA missions when separated by sub-module. - TOTAL STE (short-term engagements): 105 (FSI) and 157 (BSA) for a combined total of 262 STE. - Grand total of activities across modules: 446. ### Key findings — FSIs Sub-Module - Phase I targets: - All Phase I targets for the FSIs Sub-Module were achieved or exceeded, except one: the number of additional LLMICs compiling core FSIs was 27 against the target of 29. - Coverage increases: - 27 countries started to compile ‘core’ FSIs (target 29). - With the additional 27 countries, the number of LLMICs compiling FSIs increased to 77. - 11 of the 27 countries (Djibouti, Democratic Republic of Congo, Eritrea, Liberia, Ethiopia, Jordan, Malawi, Morocco, Mozambique, Somalia and Nepal) started reporting FSIs to STA regularly for dissemination. - Sierra Leone submitted provisional FSIs to STA for review prior to dissemination. - 15 of the 27 countries compile FSIs for internal use or provide data only to IMF area department country teams (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo, Cape Verde, Mongolia, South Sudan, Sudan, Timor-Leste, Tunisia, Zimbabwe). - Non-core FSIs: - 46 LLMICs were supported to compile additional (non-core) FSIs, against a target of 15. - 46 LLMICs now compile and report additional FSIs for deposit-takers, nonbank financial institutions, and real estate markets. - Adoption of updated methodology: - 51 LLMICs have implemented the new templates reflecting the IMF’s 2019 FSIs Compilation Guide. - As of end of Phase I, 40 of the 51 countries are already using the new templates to report updated FSIs to the IMF; the remaining 11 are in the process of starting to report to STA. - Examples of impacts: - The reported data are disseminated on the IMF’s FSIs website and have been used in IMF surveillance (example noted: IMF 2024 Article IV staff Report for Liberia includes FSIs compiled following IMF TA support under the FSSF). ### Country case: Nepal (FSM support) - FSM support to Nepal included five TA missions (including an FSSR). - Progress and outputs: - In 2018 Nepal started regular reporting of FSIs for deposit takers (DTs) and extended FSI coverage to nonbanks. - NRB currently reports 14 core and seven encouraged FSIs for DTs, two FSIs for OFCs, one FSI for households, and two FSIs for real estate markets—on a quarterly basis—for dissemination on the IMF’s FSIs website. - Nepal migrated to the new FSIs reporting templates based on the 2019 FSIs Guide in 2023; work is ongoing to report additional FSIs for OFCs. - MFS TA missions in FY2020 and FY2023 improved coverage and quality of monetary statistics for central bank and other depository corporations (ODCs) and expanded MFS coverage to include OFCs. - OFCs represent 20 percent of the total financial system assets in Nepal (as identified by the FSSR), prompting development of a framework to compile balance sheet data for OFCs covering insurance corporations, pension funds, and several other institution types. - External sector statistics (ESS) TA mission in FY2025 assisted on methods for compilation of trade credits and international reserves; a follow up ESS TA mission is scheduled for FY2026. - Nepal started to compile balance sheet data for the budgetary central government and has reported data for 2019-2021 to STA. ### Key findings — BSA Sub-Module - Phase I targets exceeded: - 34 LLMICs enhanced compilation of primary statistics underlying the BSA, surpassing the project target of 25 LLMICs. - Eight countries compiled primary statistics to generate a BSA matrix for the first time: Angola, Burkina Faso, Cambodia, Guinea, Mongolia, Morocco, the Philippines, and Papua New Guinea. - Topic-specific improvements: - 44 LLMICs improved data in at least one of three topical areas against the target of 30. - Main data sources and use: - The main data source for the BSA matrix are IMF standardized reporting forms (SRFs) of MFS with additional information from external sector and government sector statistics. SRFs enable from-whom-to-whom tables for stocks for inclusion in the BSA. - Some countries compiled and published their BSA as part of FSSR reports (e.g., Papua New Guinea). - Improvements in MFS: - With FSSF CD support, eleven countries started to report data for the central bank and other depository corporations (ODCs): Djibouti, Guinea, Jordan, Liberia, Libya, Madagascar, Malawi, Mauritania, Tunisia, Uzbekistan, and Zimbabwe. - Nine countries began reporting data for other financial corporations (OFCs): Angola, Cambodia, Kyrgyz Republic, Morocco, Nigeria, the Philippines, Tunisia, Uzbekistan, and Rwanda. - Compiled data are based on detailed SRFs with breakdowns by financial instrument and counterpart sector to enable BSA matrices. - These data are disseminated via the IMF data portal and national outlets and used by IMF country teams and departments for surveillance. Example: inclusion of OFCs data in South Africa’s Article IV staff report. - Improvements in IIP: - Five countries started to report IIP data: Republic of Congo, The Gambia, Kenya, Madagascar (quarterly), and Uzbekistan. - Six countries increased IIP frequency from annual to quarterly: Djibouti, Eswatini, Liberia, Nigeria, Rwanda, and Zambia. - Noted milestones: Kenya, Liberia, Rwanda, Sudan, and South Sudan reached important milestones such as integrated IIP statements and enhanced direct investment statistics. - Improvements in ESS and IIP quality: - All countries receiving Phase I TA on ESS and IIP made enhancements in data quality, consistency, frequency, and adherence to international statistical standards. Country examples include Kenya, Republic of Congo, Rwanda, Sudan, Malawi, and Mozambique. - Improvements in GFS: - Nine countries started to report GFS balance sheet data: Armenia, Burkina Faso, Ethiopia, Georgia, Kosovo, Mozambique, Mongolia, and Nepal. - Additional countries started to report government balance sheet liability data: Eswatini, Guatemala, Jordan, Lesotho, Madagascar, Papua New Guinea, and Zambia. - Reported GFS data are disseminated through the IMF data portal for use in compiling BSA and informing policy analysis. ### Country case: Eswatini (FSM support) - FSM support included three TA missions (including one FSSR), complemented by IIP and GFS support through other thematic funding. - FSI reporting and MFS improvements: - After the FY2021 FSIs virtual mission, the Central Bank of Eswatini (CBE) reported 15 core and five additional FSIs for DTs based on the 2019 FSIs Guide. - The mission helped map FSI source data to the new templates enabling automatic generation of FSI ratios and reducing manual processes. - FY2018 MFS TA achievements included establishment of an MoU for data sharing between CBE and the Financial Services Regulatory Authority (FSRA), new datasets on Savings and Credit Cooperatives (SACCOs) and credit institutions collected regularly, and enhanced source data on pension funds and insurance to expand MFS coverage to nonbanks. - STA participated remotely in the August 2023 FSSR; an MFS TA mission is scheduled in FY2026 to assist development of OFC accounts. - Eswatini started to report quarterly IIP based on BPM6 in 2018 and is regularly reporting government balance sheet liabilities to STA. *Source: FSSF Phase I achievements report.* ### 47. Under Phase I, the entire universe of over 90 FSSF-eligible countries has received CD ### 47. Under Phase I, the entire universe of over 90 FSSF-eligible countries has received CD ### Reach and delivery modalities - The entire universe of over 90 FSSF-eligible countries received CD support through TA missions, regional trainings, or ad-hoc short-term engagements to develop and/or improve relevant financial sector and balance sheet statistics. - Nearly 60 LLMICs have benefitted from targeted TA missions. - Virtual CD delivery adopted during the COVID-19 pandemic allowed continuity despite travel disruptions and has become an important and efficient modality in many cases. - In-person TA delivery remains particularly useful for countries with low capacity and/or internet connectivity, including FCS. - Online training courses on FSIs and MFS developed using the Data for Decisions (D4D) funding gained excellent traction among FSSF-eligible countries with many participants taking these online courses. ### Box 8 — Financial statistics Module (FSM) support to Madagascar: key outcomes - Four TA missions, including an FSSR mission in FY2025, supported improvements in financial sector statistics. - Madagascar is reporting 13 core and eight additional FSIs for DTs and two additional FSIs for real estate according to the 2019 FSIs Guide. - The combined FSI/MFS TA mission in FY2021 assisted migration to the new FSI reporting templates; 10 FSIs were compiled during the mission. - Frequency of reporting for several indicators improved, allowing more timely monitoring. - Progress on primary statistics enabled compilation of a BSA matrix useful for financial stability analysis. - Authorities regularly compile monetary statistics for the central bank and ODCs; coverage of ODCs was improved to include deposit-taking microfinance institutions. - Authorities are working to expand MFS coverage to nonbanks; a follow up mission is scheduled in FY2026. - The ESS TA mission in FY2019 led to an updated quarterly IIP covering 2006–2018 submitted to STA in November 2018 and disseminated on the IMF website. - D4D funding further enhanced ESS compilation and increased coverage of large companies in BoP and IIP surveys, with regular annual surveys and improved timeliness. - The GFS mission in FY2021 introduced compilation of the financial balance sheet for the general government; Madagascar adopted GFSM 2014 methodology and is producing high-quality GFS for the budgetary central government. - A comprehensive regulatory framework to strengthen GFS compilation processes and standards has been finalized; work is ongoing for full adoption. - STA participation in the FSSR mission in FY2025 assessed progress and diagnosed areas for further enhancements, providing a comprehensive overview and laying groundwork for future TA in FSIs and BSA. ### STA–MCM collaboration and follow-up - STA participated in fifteen MCM FSSR diagnostic missions: Cabo Verde, Cambodia, Eswatini, The Gambia, Lesotho, Moldova, Nepal, Papua New Guinea, Somalia, Tajikistan, Uzbekistan, Zimbabwe, Kenya, Madagascar, and Vanuatu. - STA’s main roles: support financial sector statistics analysis through improved data and develop a TA work plan for CD interventions; provide underlying data and analysis for some FSSRs even when not joining the mission. - Outcomes: joint workplans that synergize policy-related work with STA’s statistical support and ensure coordination of CD activities among departments and with recipient countries. - Follow-up MFS TA missions to these countries will be planned under the Statistics Module in Phase II whenever needed. ### Challenges and lessons learned - Human resource and institutional constraints: - Low capacity and human resource constraints, and weak institutional and organizational arrangements limited implementation of FSSR follow-up TA recommendations. - Staffing issues, resource constraints, and high staff turnover hindered counterparts' ability to implement recommendations and independently run proposed processes. - Understaffed, low-capacity institutions often exhibited unclear roles, lack of dedicated structures, and weak leadership impeding decision-making. - Data availability and usage: - Absence of data and limited data collection capacity hindered reforms, especially data-intensive CD activities such as stress testing. - Authorities’ hesitation to provide necessary data or limited availability negatively impacted delivery and follow-up. - Use of data on nonbank financial institutions to inform macroeconomic policy and financial stability analysis remains limited in some countries despite their growing significance. - Going forward, emphasis will be placed on impressing on authorities the importance of including nonbank financial institutions in relevant datasets and policy analysis. - External shocks and security: - COVID-19 pandemic, political instability and security concerns impeded CD implementation in several cases (examples cited include Sri Lanka, Republic of Guinea, Kosovo, Rwanda, Uganda, West Bank and Gaza). - Pandemic and conflict-related constraints forced project scope revisions and modality shifts in some contexts (e.g., West Bank and Gaza revised to two high priority areas in 2022). - Political developments in Guinea over 2020–2021 stalled implementation until early 2022 when renewed interest emerged. - Resident advisors: - Continuous presence of dedicated resident advisors was critical for driving progress, addressing human resource constraints, and aligning senior management expectations with resource intensity of processes. - Catalytic role and complementarities: - FSSR diagnostics acted as guidelines for other CD engagements funded by different sources (e.g., IMF RCDCs); the FSSF-supported CD roadmap oriented AFW2 TA to Cabo Verde. - Online courses were broadly successful, particularly in LLMICs; demand remained high though registrations to the cyber risk supervision course declined over time for specified reasons. - Collaboration with the World Bank Group enhanced CD implementation, increased buy-in for addressing data gaps via BSA, avoided duplication, and leveraged complementary expertise across nearly all FSSR recipient countries. - Complementarity with other thematic funds (e.g., Somalia Country Fund, D4D) ensured continuity of CD delivery and avoided overlap; examples include Somalia support for MFS and FSI datasets and government balance sheets and IIP compilation. - Institutional collaboration: - Close inter-institutional collaboration proved necessary for compiling FSIs and BSA statistics (examples: GFS mission in Kosovo developed a draft MoU among Central Bank of Kosovo, Kosovo Agency for Statistics, and MOFLT; ESS/IIP mission for Bank of Mozambique promoted collaboration between Ministry of Finance and central bank). ### Emerging topics covered and demand-driven focus - Phase I FSSRs and subsequent TA focused on foundational building blocks for financial stability and oversight, while covering some emerging areas driven by country demand: - PNG FSSR covered digital money, central bank digital currency (CBDC) and regulatory sandboxes for fintech innovations. - DRC FSSR analyzed availability and use of gender disaggregated data in financial supervision; a Toronto Centre follow-up TA mission in March 2024 assessed gender equality in management bodies. - Kenya FSSR diagnostic (funded under Phase II) addressed oversight of digital finance and recommended developing and implementing an RBS framework for payment service providers. ### Way forward and Phase II priorities - Continuation and transitions: - A few Phase I projects will continue during Phase II: Cabo Verde, the DRC, Lesotho, Rwanda and Sierra Leone. - Some Phase I projects require updates under Phase II to meet authorities’ needs (example: Kosovo will receive continued MCM support via an updated diagnostic). - New targeted FSSR follow-up workplans have been developed where momentum exists (example: Zimbabwe banking regulation and supervision). - Security deterioration (example: DRC) may delay CD delivery, require shifts from in-person to virtual modalities, and prompt redesign of CD priorities. - Continued need for CD: - LLMICs and FCS will benefit from continuation of CD on strengthening financial sector stability frameworks; CD is a prolonged process, especially where institutions are weak. - Many recipient countries continue to express strong desire for further assistance. - Specific country support examples: - Djibouti: need to enhance on-site supervision; METAC ready to provide further CD following resident advisor departure in September 2024. - Gambia: further TA on bank supervision and regulation will be provided from Afritac West 2 (AFW2). - Bank of Uganda: MCM willing to support finalization of RBS framework operationalization. - Uzbekistan: recent FSAP expected to shape future financial sector-related CD activities. - Cambodia: authorities requested continued MCM TA to strengthen the National Bank of Cambodia’s Financial Stability Department. - West Bank and Gaza: MCM CD on supervision and regulation will continue to be delivered through METAC. - Phase II design and focus: - Phase II incorporates Phase I lessons: FSSR diagnostic remains the core element. - FSSR follow-up TA projects will focus on a relatively small number of workstreams per project and place greater emphasis on assessing CD recipient absorption capacity. - Availability of sufficient human resources to support implementation will be an important consideration. - A more flexible approach to setting the annual budget under the Sub-Module on FSSR follow-up TA projects will enhance flexibility and resource effectiveness. - Multi-country activities (online training tools, webinars, workshops such as the Annual Cyber Security Workshop) will provide complementary capacity building in high-demand areas. - Financial statistics and BSA priorities under Phase II: - Continued focus on improving compilation framework and coverage for compiling FSIs including for nonbanks, and developing consistent source data for all BSA primary statistics. - Enhanced CD on monetary statistics to cover digital money, crypto assets, flow data to enhance the BSA framework, and corporate and household debt. - Scope remains to improve quality of FSI data compiled based on the 2019 FSI Guide in terms of methodology and coverage; similar improvements needed for BSA Sub-Module data. - Collaboration and pipeline: - IMF will continue tailoring FSSF CD activities to country-specific circumstances to strengthen financial sector stability frameworks. - A strong pipeline of demand is expected under Phase II, focusing on producing and delivering follow-up TA workplans for recently completed FSSR diagnostics, completing remaining Phase I projects, and conducting new diagnostics. - IMF will continue close cooperation with other CD providers to leverage synergies and avoid overlaps. *Source: Financial Sector Stability Fund (FSSF) Phase I achievements report, IMF.* ### 65. Phase I of the FSSF was completed with financial support from nine donor partners: ### Phase I of the FSSF — Achievements and Financial Results ### Financial contributions and cash flows - Phase I of the FSSF was completed with financial support from nine donor partners: China, Germany, Italy, Luxembourg, Saudi Arabia, Sweden, Switzerland, the United Kingdom, and the European Investment Bank (EIB). - Contributions received from donor partners were US$28.8 million. - At the end of Phase I, partners had disbursed all their commitments, and cash inflows into the Thematic Fund totaled US$30.4 million which includes the interest earned. - Interest earned (in thousands of US$) by fiscal year: 61, 268, 286, 2, 12, 384, 446, 126; total interest earned 1,584. - Total Cash Available (in thousands of US$) by fiscal year: 8,624; 9,255; 6,768; 3,264; 412; 1,457; 446; 126; total 30,352. - Expenses Paid (in thousands of US$) by fiscal year: 638; 3,117; 4,225; 2,660; 3,592; 5,274; 7,066; 3,119; total 29,692. - Cash Balance (in thousands of US$) by fiscal year: 7,985; 14,123; 16,666; 17,270; 14,091; 10,274; 3,653; 660; ending balance 660. - The unspent balance of US$660K (as of April 2025) in the Subaccount represents remaining interest earned; this residual interest earned will be prorated across all donor partners and be transferred to Phase II upon the endorsement of the Steering Committee. - Contributions (detailed per donor, in thousands of US$): China 3,000; European Investment Bank 1,193; Germany 4,518; Italy 3,592; Luxembourg 3,421; Saudi Arabia 2,000; Sweden 4,412; Switzerland 4,021; United Kingdom 2,611; total contributions shown 28,768. - Note: Contributions are net of transfers and return of funds; expenses paid include the 7% TFM. ### Budget execution and program spending - Approved Budget as of June 2024: Total 30,226 (in thousands of US$). - Current Budget as of April 2025: Total 30,260 (in thousands of US$). - Total Expenses as of April 30, 2025: 29,692 (in thousands of US$). - Remaining Budget: 568 (in thousands of US$). - Budget Execution: 98%. - Trust Fund Management Fee (in thousands of US$): Approved 1,977; Current 1,980; Expenses 1,942; remaining 37. - Major budget lines (Approved / Current / Expenses / Remaining Budget / Execution (%)): - Direct TA: 17,528 / 17,922 / 17,810 / 112 / 99% - Financial Sector Reform Module: 10,041 / 10,169 / 10,156 / 13 / 100% - Financial Sector Statistics Module: 6,919 / 6,920 / 6,924 / (3) / 100% - Cyber Risks: 568 / 833 / 730 / 102 / 88% - Follow-up TA Country Programs: 12,142 / 11,783 / 11,426 / 357 / 97% - Selected country program examples (Current Budget / Expenses / Remaining / Execution %): - Cabo Verde: 235 / 195 / 40 / 83% - Cambodia: 1,293 / 1,281 / 12 / 99% - Democratic Republic of the Congo: 720 / 709 / 11 / 98% - Djibouti: 860 / 744 / 9 / 99% - Gambia: 1,264 / 1,302 / - / 100% - Guinea: 423 / 405 / 17 / 96% - Kosovo: 544 / 491 / 20 / 96% - Lesotho: 131 / 88 / 27 / 77% - Rwanda: 1,004 / 891 / 114 / 89% - Sierra Leone: 1,334 / 1,306 / (25) / 102% - Sri Lanka: 1,209 / 1,209 / - / 100% - Uganda: 986 / 986 / - / 100% - Uzbekistan: 1,132 / 795 / 106 / 88% - West Bank And Gaza: 403 / 403 / - / 100% - Zimbabwe: 605 / 620 / 27 / 96% - Online Training: 245 / 219 / 26 / 89% - FSI Connect Online Training: 90 / 74 / 16 / 83% - Cybersecurity Online Course: 155 / 145 / 10 / 93% - Administrative/Governance Cost: 310 / 236 / 74 / 76% - Steering Committee and Evaluation: 310 / 236 / 74 / 76% ### Programmatic achievements and country-level results - Objective 1 (Financial sector stability reviews informs financial sector reforms) - Twenty-six FSSR diagnostics were completed. - FSSR follow-up TA projects approved (except Bangladesh and Nicaragua). - Follow-up TA projects started in Phase I continuing under Phase II for: the DRC, Lesotho, Cabo Verde, Sierra Leone, Rwanda. - Objective 2 (Improved financial sector regulation and supervision) - Significant progress achieved in all FSSR follow-up TA projects covering regulation and supervision. - Risk-Based supervision implemented in Gambia, Kosovo, the DRC, Rwanda, Guinea, Uganda, and Sierra Leone. - On and off-site supervision improved in Djibouti, Gambia, the DRC, and Uganda. - Bottom-up stress tests developed in Rwanda and Uganda. - Banking legislation and regulatory frameworks strengthened in Gambia, Kosovo, Guinea, the DRC, Zimbabwe, Sierra Leone. - Djibouti, the Gambia, Rwanda, Sierra Leone benefited from dedicated LTXs on bank supervision. - Objective 3 (Strengthened capacity of Central Banks in systemic risk analysis) - Creation of stability departments in Uzbekistan, the DRC, Cambodia. - Development of systemic risk analysis tools in Sri Lanka, Lesotho, Cambodia, Uzbekistan. - Establishment of stress testing frameworks in Cabo Verde, Sierra Leone, Kosovo, Rwanda, Uzbekistan, Sri Lanka, Gambia, Uganda, Cambodia. - Objective 4 (Crisis prevention and inter-agency crisis preparedness) - Resolution framework established with legislative and operational frameworks in Cabo Verde, West Bank and Gaza, Zimbabwe. - Deposit insurance legislation adopted and implemented in Gambia, Zimbabwe. - Emergency liquidity (ELA) framework established in Uzbekistan and Guinea. - Objective 5 (Macroprudential policy frameworks) - Significant progress in macroprudential policy in Sri Lanka, Uzbekistan, Cambodia, Sierra Leone, Gambia, the DRC. - Two countries had dedicated LTXs (the DRC, Cambodia): systemic risk analysis strengthened, effective macroprudential policy framework and toolkit established. - Objective 6 (Oversight of FMIs and payment aspects of financial inclusion) - Oversight of payment systems strengthened in Sri Lanka; project assisted the Central Bank in revamping payment and settlement systems through legal framework review and policy discussions. - Objective 7 (Coverage of Financial Soundness Indicators) - Result 7.1: Financial sector authorities compile and report FSIs (program objective stated; progress implied through FSI-related activities and online trainings). ### Visibility, dissemination, and donor recognition - The IMF provided donor partner visibility through social media postings, IMF publications including MCM CD annual reports and STA CD brochures, and outreach events at the IMF-WB Annual and Spring Meetings. - An overview of the FSSF is available online on the IMF’s website and updated periodically, providing external audiences with a one-stop service for relevant information and published TA reports on FSSF-funded missions. - Donor partners were systematically recognized, with explicit acknowledgement online and in TA reports and IMF publications. - All relevant materials including those related to the Steering Committees are made available to donor partners on the IMF's Partners Connect platform in compliance with the IMF’s CD dissemination policy. *Source: Phase I achievements summary of the FSSF (financial and programmatic results, as of April 30, 2025).* ### 1. An additional 29 LLMICs ### 1. An additional 29 LLMICs ### Expansion of FSI reporting coverage and quality - Target and overall coverage - Objective: an additional 29 LLMICs report “core” FSIs to the FSI database, for a total of 77 LLMICs reporters. - Progress on core FSI compilation and reporting - An additional 27 LLMICs have started to compile FSIs, against the target of 29. - Eleven out of these 27 countries (Djibouti, the Democratic Republic of Congo, Eritrea, Liberia, Ethiopia, Jordan, Malawi, Morocco, Mozambique, Somalia and Nepal) have started reporting FSIs to STA regularly. - Sierra Leone has submitted provisional FSIs to STA for review before proceeding with data dissemination. - The remaining 15 countries have started compiling FSIs for internal use; a few already provide these data to IMF area department country teams for surveillance purposes only. These 15 countries are: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo, Cape Verde, Mongolia, South Sudan, Sudan, Timor-Leste, Tunisia, and Zimbabwe. - Note: Eritrea reports FSIs to STA only for internal analytical use; their data are not disseminated externally, as per the authority’s request. - Extension of coverage to non-core FSIs - Target: Extend coverage of FSIs for another 15 LLMICs to include non-core FSIs for deposit-takers, nonbank financial institutions, and real estate markets. - Result: 46 LLMICs extended the coverage of FSIs and reported additional FSIs for deposit-takers, nonbank financial institutions, and real estate markets, significantly surpassing the original target of 15. - Methodological enhancements and templates - Target: Improve data of current FSI reporters to include methodological enhancements stemming from the 2019 revised FSI Compilation Guide. - Result: A total of 51 LLMICs have implemented the new templates to compile FSIs which reflect the updated methodology based on the 2019 FSIs Guide. - Forty of these countries are already using the new templates to report updated FSIs to IMF. - The remaining 11 countries are in the process of starting to report to STA. - The 2019 FSIs Guide was implemented in February 2022; it introduced improved metrics for banks, expanded the set of indicators for nonbanks, and introduced new measures to assess tail risks, amongst other things. - TA missions and limited engagements commenced as early as 2021Q1 to assist countries to update the methodology to compile FSIs and report these data in new templates. - Partnership with MCM and FSSR support - Action: Partner with MCM in providing FSIs to planned FSSRs. - STA joined fifteen FSSR missions to support MCM in financial sector statistics analyses and address data gaps: Cabo Verde, Cambodia, Eswatini, The Gambia, Lesotho, Moldova, Nepal, Papua New Guinea, Somalia, Tajikistan, Uzbekistan, Zimbabwe, Kenya, Madagascar, and Vanuatu. - STA also provided the underlying data and analysis to several other FSSRs without joining the mission. ### Key statistics and counts (FSI work) - 29 (target for additional core FSI reporters) - 77 (total LLMICs reporters as target) - 27 (LLMICs started compiling FSIs) - 11 (of those 27 reporting to STA regularly) - 15 (countries compiling for internal use listed above) - 46 (LLMICs that extended FSI coverage to non-core FSIs) - 51 (LLMICs implemented new FSI templates) - 40 (countries already reporting updated FSIs to IMF using new templates) - 11 (countries in process of starting to report to STA using new templates) - February 2022 (implementation date of 2019 FSIs Guide) - 2021Q1 (TA missions commenced as early as) ### Balance-sheet approach (BSA): Objective 8 and Result 8.1 - Objective 8: Balance-sheet approach (BSA) is used more systematically in policymaking and surveillance in low and lower-middle income countries. - Result 8.1: Increased number of countries using balance sheet matrices in their national financial sector surveillance framework. - Targets and planned outputs - Targets: - An additional 25 LLMICs enhance their primary statistics for compilation of BSA matrices, providing prerequisites for implementing the BSA in up to 45 LLMICs. - In another 30 LLMICs, address topic-specific data issues to prepare partial BSA matrices. - Intended data users: BSA matrices available to the authorities, planned FSSRs, and IMF Article IV consultations. - Progress and outcomes - 34 LLMICs enhanced their primary statistics underlying the BSA, surpassing the project target of 25 LLMICs. - Monetary and financial statistics (MFS) reporting progress: - Eleven countries have started to report data for the central bank and other depository corporations: Djibouti, Guinea, Jordan, Liberia, Libya, Madagascar, Malawi, Mauritania, Tunisia, Uzbekistan, and Zimbabwe. - Nine countries have begun reporting data for other financial corporations: Angola, Cambodia, Kyrgyz Republic, Morocco, Nigeria, The Philippines, Rwanda, Tunisia, and Uzbekistan. - International investment position (IIP) progress: - Five countries have started to report IIP: Kenya, Madagascar, The Gambia, Republic of Congo, and Uzbekistan. - Six countries increased the frequency of IIP from annual to quarterly: Djibouti, Eswatini, Liberia, Nigeria, Rwanda, and Zambia. - Kenya, Liberia, Rwanda, Sudan and South Sudan have reached important milestones in IIP improvements such as having an integrated IIP statement, producing International Reserves and Foreign Currency Liquidity, and collecting enhanced further direct investment statistics. - Government finance statistics (GFS) progress: - Nine countries have started to report GFS balance sheet data: Burkina Faso, Ethiopia, Mozambique, Mongolia, Nepal, Armenia, Georgia, and Kosovo. - Six countries have started to report government balance sheet liability data: Eswatini, Guatemala, Jordan, Lesotho, Madagascar, Papua New Guinea, and Zambia. - First-time BSA compilation: - Seven countries have compiled primary statistics to generate a BSA matrix for the first time: Angola, Burkina Faso, Cambodia, Guinea, Mongolia, Morocco, and The Philippines. - Overall coverage for topic-specific improvements: - The FSM has helped 44 LLMICs (including those listed above) address topic-specific data issues and improve the BSA matrices. - Key statistics and counts (BSA work) - 25 (target LLMICs to enhance primary statistics) - 45 (up to LLMICs BSA implementation prerequisite) - 30 (target LLMICs to prepare partial BSA matrices) - 34 (LLMICs that enhanced primary statistics) - 11 (countries reporting central bank and other depository corporations data) - 9 (countries reporting data for other financial corporations) - 5 (countries started reporting IIP) - 6 (countries increased IIP frequency to quarterly) - 9 (countries started to report GFS balance sheet data) - 6 (countries started to report government balance sheet liability data) - 7 (countries compiled BSA matrix for the first time) - 44 (LLMICs helped by FSM to address topic-specific data issues) ### External evaluation of FSSF Phase I and program improvements - Evaluation conclusions - The external evaluation report of FSSF Phase I concluded that: (i) the FSSF performed well in Phase I; (ii) both Reform Module and Statistics Module were well-designed; and (iii) the program was relevant, coherent, and well-coordinated with the IMF area department activities. - The evaluation acknowledged that the COVID-19 pandemic significantly disrupted CD delivery and reform implementation agendas in recipient countries, which should have lowered scores in some areas (e.g., effectiveness, efficiency, and impact). - Recommendations summary - The evaluation presented nine recommendations, to be used to improve the program in Phase II. - Four recommendations were rated as high priority and five as medium priority. - Actions envisaged to address the nine recommendations (Annex Table 1) 1. IMF needs to elaborate in detail the objectives and purposes of FSSRs and take proactive action to achieve them. (High) - Objectives and purposes of FSSRs will be more clearly articulated. - The FSSR Handbook (an internal MCM guidance for staff) will be revised to provide more guidance in designing the projects and to ensure that not only World Bank, but also other TA providers relevant to the individual countries (e.g., ADB, EBRD, etc.) be adequately engaged. - Project managers of FSSR follow-up TA projects will coordinate the work. 2. Financial Reform Module follow-up CD needs to be designed in a manner that is more cognizant of likely implementation timescale and beneficiary absorption capacity. (High) - FSSR follow-up TA projects will be made more focused by limiting the scope to a few workstreams (e.g., 2-3 workstreams). - A larger number of workstreams would be allowed only in exceptional circumstances (large TA needs, adequate absorption capacity, etc.). - The IMF will perform capacity assessments (short-term missions by project managers and FSSR mission chief) before designing follow-up TA programs. 3. Whilst still developing a long-term Financial Reform Module action plan, consider breaking up follow-up CD interventions into discreet, coordinated and sequenced topical projects, or clusters of projects, rather than committing funds for the entire initiative up-front. (High) - The scope of the FSSR follow-up TA work will align with item 2 above. - In the event of adequate project execution and continued demand for TA, the project would be revised and submitted to FSSF SC for re-approval. - Greater flexibility in funding TA follow-up programs will support this approach. 4. IMF and donors should discuss the approach to prioritization of Financial Reform Module countries in the Statistics Module portfolio. (High) - Statistics Module annual work plans will be based on priorities determined by Area Departments, the outcome of Reform Module, country authorities’ requests, and STA’s own considerations under the Statistics Module. - IMF staff will present how FSSR countries are incorporated in the Statistics Module work plan and discuss with donors at check-in/annual meetings. 5. Strengthen linkage of Statistics Module activities with FSSRs and develop country Statistics Module CD implementation roadmaps. (Medium) - IMF staff will: (i) prepare a chapter on financial sector statistics within the TA report of FSSR missions; (ii) develop a high-level Statistics Module country action plan based on FSSR findings and provide further details on the action plan; (iii) identify future TA needs; (iv) organize semi annual meetings among FSSF coordinators in STA and MCM; and (v) reflect the roadmap with missions, milestones, and targets for individual topical interventions. 6. Both Financial Reform Module and Statistics Module to explore options for strengthening monitoring and reporting of implementation of CD advice. (Medium) - IMF will develop a comprehensive formal system to monitor the RBM log frames more frequently, including ratings updates to assess implementation of action plans left by missions, irrespective of funding source. - For the Reform Module, LTX reports will include time-bound action plans and LTXs will have responsibility for monitoring implementation of STX work, as relevant. - MCM TA project managers will oversee the process. 7. Improve the use of RBM logframes through better design, increasing accountability, and consistent updating, and link with donor reporting. Also develop a Theory of Change for the Program and each of the modules, and link with RBM indicators. (Medium) - IMF will improve the clarity of log frames and introduce semi-annual monitoring of results for both Reform Module and Statistics Module. - CDMAP is expected to improve reporting of financial and results in country-specific projects, and IMF staff will continue to engage on best reporting practices including using RCDCs as examples. 8. For Financial Reform Module, consider developing broad criteria and parameters for deploying LTXs to ensure they are being used cost-effectively. In addition, develop methodical approach for deploying an appropriate mix of STXs and LTX in a country. (Medium) - IMF staff will articulate a more systematic approach in deploying LTX and STXs in follow-up TA programs. - The approach will recognize that focusing narrowly on cost metrics will not capture many of the intangible benefits of consistent and continuous involvement in environments with low absorption capacity. 9. Strengthen coordination with WB and donors at both strategic and operational levels. (Medium) - Regular (quarterly) coordination at program level between IMF and WB will continue, including regarding selection of countries for FSSRs and coordination of follow-up TA activities. - TA project managers will continue to actively engage with their WB counterparts on individual FSSR follow-up TA projects. --- _Source: https://www.imf.org/-/media/files/capacity-developement/fssf/fssf-phase-i-achivements-report-final-july-2025.pdf_