## 2021 Financial Sector Assessment Program Review—Background Paper On Quantitative Analysis

_Policy Papers, May 28, 2021_

## Source details

**Canonical URL:** [2021 Financial Sector Assessment Program Review—Background Paper On Quantitative Analysis](https://www.imf.org/en/publications/policy-papers/issues/2021/05/28/2021-financial-sector-assessment-program-review-background-paper-on-quantitative-analysis-460523)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2021/05/28/2021-financial-sector-assessment-program-review-background-paper-on-quantitative-analysis-460523/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2021/05/28/2021-financial-sector-assessment-program-review-background-paper-on-quantitative-analysis-460523/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2021/05/28/2021-financial-sector-assessment-program-review-background-paper-on-quantitative-analysis-460523/bundle-manifest.json)

## Bibliographic details
- Published: May 28, 2021
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513584126.007

---

### Scope and purpose
- 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.

### Macroprudential stress testing framework — main elements
- (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.

### Microprudential and emerging-risk tools reviewed
- 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 areas and keywords emphasized
- 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.

---

## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2021/english/ppea2021041.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2021/english/ppea2021041.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/policy-papers/issues/2021/05/28/2021-financial-sector-assessment-program-review-background-paper-on-quantitative-analysis-460523_