The Financial Sector Stability Fund (FSSF)

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The Financial Sector Stability Fund (FSSF) is central to the IMF’s delivery of capacity development on financial sector stability issues.
Objectives emphasized: increase macroeconomic resilience, mitigate costs of financial crises, achieve sustainable growth, and increase financial inclusion.
Since its launch in late 2017, the FSSF has supported IMF CD delivery in low and lower-middle income countries (LLMICs) and fragile and conflict-affected states (FCSs) through development and implementation of micro- and macro-prudential frameworks, safety nets, and improvements in financial sector statistics.

Core approach begins with a rigorous country diagnostic—the Financial Sector Stability Review (FSSR)—to assess capacity to identify, monitor, and manage financial stability risks; findings guide follow-up TA projects.
FSSF-financed CD projects are country-tailored and accompanied by a rigorous monitoring and evaluation framework; objectives and outcomes are combined in a strategic logical framework (logframe) consistent with the IMF’s enhanced results-based management (RBM) framework.
Activities are delivered through two complementary pillars:
- Financial Reform Module: strengthen capacity to identify, measure, analyze, and mitigate risks to financial stability; overseen by the IMF’s Monetary and Capital Markets Department (MCM).
- Statistics Module (FSSM): provide policymakers with key, reliable and comprehensive financial sector statistics; managed by the IMF’s Statistics Department (STA).
Coordination: while managed independently, MCM and STA coordinate closely depending on country-specific circumstances; STA participates in all FSSR diagnostics to assess availability and quality of relevant financial sector statistics.

Five new FSSR diagnostics completed: Bhutan, Kosovo, Mauritania, Solomon Islands, and Zambia.
Work on one diagnostic initiated: Lao P.D.R.
Two TA programs concluded: Rwanda and Sierra Leone; both benefitted from bilateral long-term experts on bank regulation and supervision.
Twelve active TA programs ongoing: Burundi, Cabo Verde, the Democratic Republic of Congo – DRC, Eswatini, Kenya, Kosovo, Lesotho, Madagascar, Nepal, Papua New Guinea, Somalia, and Zimbabwe.
Five programs expected to begin following recently completed FSSR diagnostics.
FSSR diagnostics are led by IMF staff and comprise several experts or HQ staff.

The FSSF Statistics Module continued supporting countries under the Balance Sheet Approach (BSA) and the Financial Soundness Indicators (FSIs) sub-modules, with nearly all FSSF eligible countries (over 90 countries) having received support so far.
Outcome: most FSSF-eligible countries can now regularly compile a basic set of FSIs; focus is gradually shifting to compiling FSIs for non-banks.
BSA submodule: efforts focus on developing primary statistics and improving methodologies and coverage for Monetary and Financial Statistics (MFS), Government Finance Statistics (GFS) and International Investment Position (IIP).
FY25 delivery: 31 CD activities were delivered, representing 94 percent of the activities planned for the year.
By end-FY2024: Phase I coverage—almost the entire universe of over 90 eligible countries covered through TA missions, trainings, or limited engagements; nearly 60 LLMICs benefitted from the Statistics Module by end-FY2024.

Phase I (FY2018-24) achievements:
- By the end of FY2024, 23 FSSR diagnostics were completed.
- Almost all countries with a completed diagnostic benefitted from follow-up TA projects.
- Strong track record in supporting LLMICs and FCSs through comprehensive programmatic approaches.
Phase II (FY2025-29) direction:
- The FSSF will continue to support eligible countries in strengthening financial sector stability frameworks.
- The FSSF will remain the main thematic fund financing IMF CD activities to identify, assess, monitor, and mitigate systemic risks to financial stability in LLMICs and FCSs.
- Objectives of individual projects will depend on country circumstances; multilateral CD activities will complement bilateral country work.

FSSR diagnostics: comprehensive assessment to help authorities identify gaps and weaknesses in financial sector oversight, stability frameworks, and in producing relevant financial sector statistics.
TA work plans: medium-term TA work plans link identified strategic reforms to a prioritized and sequenced set of TA activities; formulated by the FSSR diagnostic mission to serve as basis for follow-up TA projects.
FSSR follow-up TA projects: developed from TA work plans; list of beneficiary countries approved by the FSSF Steering Committee; projects reflect demand from authorities, TA absorption capacity, IMF area department consultations, MCM functional division input, and consideration of other partners’ activities (particularly World Bank); governed by monitoring and evaluation based on IMF RBM framework.
Multi-country training: online, in-person, or hybrid activities (including online training tools and annual workshops such as the flagship Cyber Security Workshop) provide complementary CD in high-demand areas.
Statistical CD activities: FSSM supports eligible countries with two sub-modules: (i) Financial Soundness Indicators (FSI) and (ii) Balance Sheet Approach (BSA); delivery options include bilateral missions, regional workshops, and ad-hoc limited engagements.

Steering Committee (SC): comprised of representatives from donors, the IMF and the World Bank; provides strategic direction.
SC meetings and cadence:
- SC members and observers meet once a year to guide strategic path, review progress against work plan, and discuss and endorse a work plan for the following 12–18 months.
- A mid-year check-in enables the SC to review progress over the first half of the fiscal year and to endorse any planned changes for the rest of the fiscal year.

Launch: late 2017.
Phase I timeframe: FY2018-24.
FSSR diagnostics completed by end-FY2024: 23.
FSSF eligible countries covered (universe): over 90 countries.
FSSM TA mission beneficiaries (TA missions by end-FY2024): nearly 60 LLMICs.
FY25 CD activities delivered: 31 (representing 94 percent of planned activities for the year).
Recent diagnostics completed: Bhutan; Kosovo; Mauritania; Solomon Islands; Zambia.
Diagnostic initiated: Lao P.D.R.
Concluded TA programs: Rwanda; Sierra Leone.
Active TA programs (12): Burundi; Cabo Verde; Democratic Republic of Congo – DRC; Eswatini; Kenya; Kosovo; Lesotho; Madagascar; Nepal; Papua New Guinea; Somalia; Zimbabwe.

FSSF Steering Committee 2025 Annual Report
- FSSF Steering Committee 2025 Annual Report (Markdown version)
- FSSF Steering Committee 2025 Annual Report (PDF)
FSSF Steering Committee 2026 Annual Report
- FSSF Steering Committee 2026 Annual Report (Markdown version)
- FSSF Steering Committee 2026 Annual Report (PDF)
FSSF Phase I Achievements Report
- FSSF Phase I Achievements Report (Markdown version)
- FSSF Phase I Achievements Report (PDF)