## The Financial Sector Stability Fund (FSSF)

## Source details

**Canonical URL:** [The Financial Sector Stability Fund (FSSF)](https://www.imf.org/en/capacity-development/trust-fund/financial-sector-stability-fund-fssf)

## Other formats

- [Markdown version](/en/capacity-development/trust-fund/financial-sector-stability-fund-fssf/index.md)
- [Structured JSON version](/en/capacity-development/trust-fund/financial-sector-stability-fund-fssf/index.json)
- [Bundle manifest](/en/capacity-development/trust-fund/financial-sector-stability-fund-fssf/bundle-manifest.json)

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### Purpose and scope
- 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.

### Program design and approach
- 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.

### Recent diagnostics, TA programs, and country activity
- 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.

### Statistics Module (FSSM) coverage and achievements
- 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) outcomes and Phase II (FY2025-29) outlook
- 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.

### Modalities of delivery
- 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.

### Governance and oversight
- 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.

### Selected monitoring statistics and country coverage indicators
- 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.

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## Content in this bundle

- **FSSF Steering Committee 2025 Annual Report**
  - [FSSF Steering Committee 2025 Annual Report (Markdown version)](/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2025-final-july-2025.pdf.md){rel="alternate" type="text/markdown"}
  - [FSSF Steering Committee 2025 Annual Report (PDF)](/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2025-final-july-2025.pdf){rel="external" type="application/pdf"}
- **FSSF Steering Committee 2026 Annual Report**
  - [FSSF Steering Committee 2026 Annual Report (Markdown version)](/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2026-aug-2026-final.pdf.md){rel="alternate" type="text/markdown"}
  - [FSSF Steering Committee 2026 Annual Report (PDF)](/-/media/files/capacity-developement/fssf/fssf-annual-report-fy2026-aug-2026-final.pdf){rel="external" type="application/pdf"}
- **FSSF Phase I Achievements Report**
  - [FSSF Phase I Achievements Report (Markdown version)](/-/media/files/capacity-developement/fssf/fssf-phase-i-achivements-report-final-july-2025.pdf.md){rel="alternate" type="text/markdown"}
  - [FSSF Phase I Achievements Report (PDF)](/-/media/files/capacity-developement/fssf/fssf-phase-i-achivements-report-final-july-2025.pdf){rel="external" type="application/pdf"}

---

## References

- [FCSs)](https://www.imf.org/en/Topics/fragile-and-conflict-affected-states)
- [Burundi: Technical Assistance Report-Financial Sector Stability Review](https://www.imf.org/en/Publications/technical-assistance-reports/Issues/2025/03/19/Burundi-Technical-Assistance-Report-Financial-Sector-Stability-Review-565321)
- [Papua New Guinea: Technical Assistance Report-Financial Sector Stability Review](https://www.imf.org/en/Publications/technical-assistance-reports/Issues/2024/12/06/Papua-New-Guinea-Technical-Assistance-Report-Financial-Sector-Stability-Review-559177)
- [Kingdom of Eswatini: Financial Sector Stability Review (imf.org)](https://www.imf.org/en/Publications/high-level-summary-technical-assistance-reports/Issues/2024/05/03/Kingdom-of-Eswatini-Financial-Sector-Stability-Review-548564)
- [Zimbabwe: FSSR Follow Up Technical Assistance—Implementation of the Basel II/III Capital Framework (imf.org)](https://www.imf.org/en/Publications/high-level-summary-technical-assistance-reports/Issues/2023/10/17/Zimbabwe-FSSR-Follow-Up-Technical-Assistance-Implementation-of-the-Basel-II-III-Capital-540615)
- [Kingdom of Eswatini: Technical Assistance Report-Financial Sector Stability Review (imf.org)](https://www.imf.org/en/Publications/technical-assistance-reports/Issues/2024/04/05/Kingdom-of-Eswatini-Technical-Assistance-Report-Financial-Sector-Stability-Review-547081)
- [Zimbabwe: Technical Assistance Report—FSSR Follow up Technical Assistance—Implementation of the Basel II/III Capital Framework (imf.org)](https://www.imf.org/en/Publications/CR/Issues/2023/10/19/Zimbabwe-Technical-Assistance-Report-FSSR-Follow-up-Technical-Assistance-Implementation-of-540727)
- [Nepal: Technical Assistance Report—Financial Sector Stability Review (imf.org)](https://www.imf.org/en/Publications/CR/Issues/2023/10/03/Nepal-Technical-Assistance-Report-Financial-Sector-Stability-Review-539970)
- [Democratic Republic of the Congo: Technical Assistance Report-Financial Sector Stability Review (imf.org)](https://www.imf.org/en/Publications/CR/Issues/2022/09/01/Democratic-Republic-of-the-Congo-Technical-Assistance-Report-Financial-Sector-Stability-522775)
- [Republic of Kosovo: Technical Assistance Report-Financial Sector Stability Review (imf.org)](https://www.imf.org/en/Publications/CR/Issues/2020/07/07/Republic-of-Kosovo-Technical-Assistance-Report-Financial-Sector-Stability-Review-49557)
- [Republic of Moldova: Technical Assistance Report-Financial Sector Stability Review](https://www.imf.org/en/Publications/CR/Issues/2022/02/07/Republic-of-Moldova-Technical-Assistance-Report-Financial-Sector-Stability-Review-512884)
- [Zimbabwe: Technical Assistance Report—Financial Sector Stability Review Consolidated Supervision](https://www.imf.org/en/Publications/CR/Issues/2022/12/19/Zimbabwe-Technical-Assistance-Report-Financial-Sector-Stability-Review-Consolidated-527110)
- [Zimbabwe: Technical Assistance Report-Basel III Implementation](https://www.imf.org/en/Publications/CR/Issues/2022/03/02/Zimbabwe-Technical-Assistance-Report-Basel-Pillar-III-Implementation-513809)
- [Guinea: Financial Sector Stability Review](https://www.imf.org/en/Publications/CR/Issues/2020/02/11/Guinea-Financial-Sector-Stability-Review-49041)
- [Guinea: Technical Assistance Report-Report on the Financial Soundness Indicators Technical Assistance Mission (December 2-6, 2024)](https://www.imf.org/en/Publications/technical-assistance-reports/Issues/2025/07/30/Guinea-Technical-Assistance-Report-Report-on-the-Financial-Soundness-Indicators-Technical-569142)
- [Kingdom of Lesotho: Technical Assistance Report-Report on the Financial Soundness Indicators Technical Assistance Mission (April 27- May 04, 2023)](https://www.imf.org/en/Publications/technical-assistance-reports/Issues/2024/02/16/Kingdom-of-Lesotho-Technical-Assistance-Report-Report-on-the-Financial-Soundness-Indicators-544914)
- [Papua New Guinea: Technical Assistance Report-Report on Financial Soundness Indicators Mission (November 14-18, 2022)](https://www.imf.org/en/Publications/CR/Issues/2023/12/15/Papua-New-Guinea-Technical-Assistance-Report-Report-on-Financial-Soundness-Indicators-542568)
- [Zimbabwe: Technical Assistance Report—Financial Soundness Indicators Statistics Mission](https://www.imf.org/en/Publications/CR/Issues/2023/10/19/Zimbabwe-Technical-Assistance-Report-Financial-Soundness-Indicators-Statistics-Mission-540737)
- [Indonesia: Technical Assistance Report-Financial Soundness Indicators Statistics Mission](https://www.imf.org/en/Publications/CR/Issues/2023/01/30/Indonesia-Technical-Assistance-Report-Financial-Soundness-Indicators-Statistics-Mission-528757)
- [Philippines: Financial Soundness Indicators](https://www.imf.org/en/Publications/CR/Issues/2021/11/17/Philippines-Financial-Soundness-Indicators-508766)
- [Cabo Verde: Technical Assistance Report-Monetary and Financial Statistics Mission](https://www.imf.org/en/Publications/CR/Issues/2021/06/02/Cabo-Verde-Technical-Assistance-Report-Monetary-and-Financial-Statistics-Mission-50194)
- [The Federal Democratic Republic of Ethiopia: Technical Assistance Report-Financial Soundness Indicators Mission](https://www.imf.org/en/Publications/CR/Issues/2020/12/18/The-Federal-Democratic-Republic-of-Ethiopia-Technical-Assistance-Report-Financial-Soundness-49974)
- [Philippines: Technical Assistance Report-Monetary and Financial Statistics Mission](https://www.imf.org/en/Publications/CR/Issues/2019/12/27/Philippines-Technical-Assistance-Report-Monetary-and-Financial-Statistics-Mission-48927)
- [Djibouti: Technical Assistance Report-Financial Soundness Indicators Mission](https://www.imf.org/en/Publications/CR/Issues/2019/07/17/Djibouti-Technical-Assistance-Report-Financial-Soundness-Indicators-Mission-47122)
- [Jordan: Technical Assistance Report-Monetary and Financial Statistics Mission](https://www.imf.org/en/Publications/CR/Issues/2019/05/20/Jordan-Technical-Assistance-Report-Monetary-and-Financial-Statistics-Mission-46911)
- [Republic of Madagascar: Technical Assistance Report—Report on Technical Assistance Mission in External Sector Statistics (July 2-13, 2018)](https://www.imf.org/en/Publications/CR/Issues/2019/04/30/Republic-of-Madagascar-Technical-Assistance-Report-Report-on-Technical-Assistance-Mission-in-46832)
- [Islamic Republic of Mauritania: Technical Assistance Report-Report on the External Sector Statistics Technical Assistance Mission (March 19-30, 2018)](https://www.imf.org/en/Publications/CR/Issues/2019/01/16/Islamic-Republic-of-Mauritania-Technical-Assistance-Report-Report-on-the-External-Sector-46436)
- [Maldives: Technical Assistance Report-Financial Soundness Indicators Mission](https://www.imf.org/en/Publications/CR/Issues/2023/10/03/Maldives-Technical-Assistance-Report-Financial-Soundness-Indicators-Mission-539981)

_Source: https://www.imf.org/en/capacity-development/trust-fund/financial-sector-stability-fund-fssf_