{
  "title": "2021 Financial Sector Assessment Program Review—Background Paper On Quantitative Analysis",
  "publication": "Policy Papers, May 28, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2021/05/28/2021-financial-sector-assessment-program-review-background-paper-on-quantitative-analysis-460523",
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  "summary": "This paper reviews quantitative tools of financial stability assessments under the Financial Sector Assessment Program (FSAP). A key focus of FSAPs is on methodologies to gauge risks on a system-wide level and propose mitigating measures.",
  "sections": [
    {
      "heading": "Scope and purpose",
      "content": "- Reviews quantitative tools of financial stability assessments under the Financial Sector Assessment Program (FSAP).\n- Key focus: methodologies to gauge risks on a system-wide level and propose mitigating measures.\n- Concentrates on the main elements of the FSAP’s macroprudential stress testing framework and related quantitative tools."
    },
    {
      "heading": "Macroprudential stress testing framework — main elements",
      "content": "- (i) The interaction among solvency, liquidity, and contagion risks in the banking sector.\n- (ii) The assessment of the health of nonbank financial institutions (NBFIs), their interactions with banks and their impact on financial markets.\n- (iii) The assessment of the health of nonfinancial sectors and their links to the financial sector.\n- (iv) Macroprudential policy analysis."
    },
    {
      "heading": "Microprudential and emerging-risk tools reviewed",
      "content": "- Reviews recent improvements in microprudential bank solvency stress testing—an important foundation for the macroprudential stress testing framework.\n- Discusses new tools for emerging risks: climate change, fintech, and cyber."
    },
    {
      "heading": "Subject areas and keywords emphasized",
      "content": "- Subject: Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector risk, Financial stability assessment, Monetary policy, Political economy, Stress testing, Systemic risk.\n- Keywords: bank solvency stress test model, Financial Sector Assessment Program, Financial sector risk, Financial stability assessment, Global, interest coverage ratios, macro-Financial feedback loops, quantitative analysis, Stress testing, Systemic risk, transparency policy.\n\n---\n\n Content in this bundle\n\n- Policy Paper\n  - Policy Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Policy Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2021/05/28/2021-financial-sector-assessment-program-review-background-paper-on-quantitative-analysis-460523"
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    "Published: May 28, 2021",
    "Series: Policy Papers",
    "DOI: https://doi.org/10.5089/9781513584126.007",
    "Reviews quantitative tools of financial stability assessments under the Financial Sector Assessment Program (FSAP).",
    "Key focus: methodologies to gauge risks on a system-wide level and propose mitigating measures.",
    "Concentrates on the main elements of the FSAP’s macroprudential stress testing framework and related quantitative tools.",
    "(i) The interaction among solvency, liquidity, and contagion risks in the banking sector.",
    "(ii) The assessment of the health of nonbank financial institutions (NBFIs), their interactions with banks and their impact on financial markets.",
    "(iii) The assessment of the health of nonfinancial sectors and their links to the financial sector.",
    "(iv) Macroprudential policy analysis.",
    "Reviews recent improvements in microprudential bank solvency stress testing—an important foundation for the macroprudential stress testing framework.",
    "Discusses new tools for emerging risks: climate change, fintech, and cyber.",
    "Subject: Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector risk, Financial stability assessment, Monetary policy, Political economy, Stress testing, Systemic risk.",
    "Keywords: bank solvency stress test model, Financial Sector Assessment Program, Financial sector risk, Financial stability assessment, Global, interest coverage ratios, macro-Financial feedback loops, quantitative analysis, Stress testing, Systemic risk, transparency policy.",
    "**Policy Paper**"
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