Mandatory Financial Stability Assessments Under the Financial Sector Assessment Program - Update
Policy Papers, November 18, 2013
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- Mandatory Financial Stability Assessments Under the Financial Sector Assessment Program - Update
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Bibliographic details
- Published: November 18, 2013
- Series: Policy Papers
Key decision and scope
- In September 2010, the Executive Board made financial stability assessments under the Financial Sector Assessment Program (FSAP) a regular and mandatory part of bilateral surveillance under Article IV for jurisdictions with systemically important financial sectors.
- The mandate requires these stability assessments to be conducted every five years for members with systemically important financial sectors.
- The update builds on the 2009 program review that delineated institutional responsibilities of the Fund and the World Bank and defined the content of the stability assessment under the FSAP.
Rationale and limitations addressed
- The decision recognized that financial sector issues were central to the Fund’s surveillance mandate but that the FSAP, as originally designed in the late 1990s, had severe limitations as a tool for surveillance.
- Specific limitations cited:
- Voluntary participation.
- Low frequency of assessments.
- Very broad coverage, particularly in emerging market and developing countries where assessments are typically conducted jointly with the World Bank.
- The 2010 change aimed to address these limitations by regularizing and mandating the assessments for systemically important jurisdictions.
Publication and access
- Publication date: November 18, 2013.
- The IMF eLibrary offers over 25,000 IMF publications in multiple formats.
Subjects covered
- Article IV consultations
- Bilateral surveillance
- Executive Board decisions
- Financial Sector Assessment Program
- Financial stability
Source: Mandatory Financial Stability Assessments Under the Financial Sector Assessment Program - Update (November 18, 2013), International Monetary Fund — https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/mandatory-financial-stability-assessments-under-the-financial-sector-assessment-program-pp4838
Content in this bundle
- Mandatory FSAP Stability Assessments: Update