Policy Papers

<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;This paper informs the Executive Board of the staff-level understandings reached with global Standard Setting Bodies (SSBs) on the use of the three financial sector supervisory standards in FSAPs:
</p>
<li>the Basel Committee&rsquo;s Core Principles for Effective Banking Supervision (BCP), set by the Basel Committee on Banking Supervision (BCBS); </li>
<li>the Insurance Core Principles (ICP), set by the International Association of Insurance Supervisors (IAIS); and </li>
<li>the Objectives and Principles of Securities Regulation (Principles), set by the International Organization of Securities Commissions (IOSCO).</li>
<p>As graded assessments of compliance with supervisory standards are voluntary, FSAPs have adopted a flexible approach to the use of supervisory standards. A standard is either assessed in full, resulting in grades, or used as the basis for a deeper analysis of selected elements of the oversight framework in a focused review, without grades. The
SSBs and Fund staff have reached understandings on a refinement of the existing flexible approach, with sets of &ldquo;base principles&rdquo; serving as the starting points for focused reviews.</p>