2021 Financial Sector Assessment Program Review—Background Paper On Traction

Policy Papers, May 28, 2021

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A key criterion for judging the success of the Financial Sector Assessment Program (FSAP) is the extent to which the program has enhanced the IMF’s engagement with policymakers and influenced country policies.
Achieving one of the program’s key objectives—reducing the frequency and severity of financial crises—depends on FSAP’s ability to encourage policy action by country authorities, either directly or through other bilateral and multilateral activities.
The “traction” of FSAPs reflects:
- the degree to which the program is seen as useful by the authorities;
- the effect it has in shaping the domestic policy agenda;
- the impact that the FSAP may have on wider domestic and international audiences.

Emphasis on policy influence and engagement with national authorities as central measures of program success.
Linkage between FSAP outputs and real-world policy action, including bilateral and multilateral pathways for influencing country decisions.
Consideration of FSAP utility to domestic policymakers and its role in shaping domestic and international audiences’ perceptions and actions.

Subject: Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector risk, Financial sector stability, Monetary policy, Political economy, Stress testing, Systemic risk
Keywords: capital markets department of the IMF, climate stress tests, Financial Sector Assessment Program, Financial sector risk, Financial sector stability, Global, mission chief, Policy review Department, Policy review Department of the IMF, Stress testing, Systemic risk, transparency policy