Public Information Notice (PIN) No. 03/71
IMF Executive Board Discusses Financial Soundness Indicators

June 13, 2003

Financial Soundness Indicators -- Background Paper
May 14, 2003

Financial Soundness Indicators (FSIs) and the IMF

Compilation Guide on Financial Soundness Indicators
July 30, 2004

Financial Soundness Indicators

Prepared by the Staff of the Monetary and Financial Systems and Statistics Departments

May 14, 2003

Use the free Adobe Acrobat Reader to view the full text of 348kb pdf file.


Executive Summary

List of Acronyms and Abbreviations

  1. Introduction

  2. Review of the Work Program on FSIs Endorsed by the IMF Board
    1. Development of an FSI Compilation Guide
    2. Analytic Work Using the FSIs

  3. Compilation Guide
    1. Consultations on the Guide
    2. Major Themes of the Guide
    3. Completion of the Guide

  4. Lessons on the Compilation and Use of FSIs
    1. Survey of Data Availability and of Staff Reports
    2. Experiences Using FSIs in FSAPs

  5. Using FSIs within A Framework for Financial Stability Analysis
    1. Framework for Financial Stability Analysis
    2. Analysis of Linkages Among FSIs
    3. Taking Account of Macro-Financial Linkages
    4. The Core and Encouraged Sets of FSIs

  6. Using Stress Testing to Support the Analysis of FSIs

  7. Contribution of Standards Assessments to the Analysis of FSIs

  8. Role of Information on the Financial Infrastructure

  9. Encouraging Compilation and Dissemination of FSIs
    1. Compilation
    2. Dissemination

  10. Proposals for Strengthening Surveillance Using FSIs-Next Steps
    1. Analytic Work Developing FSIs
    2. Integrating FSIs into Fund Surveillance

  11. Priorities and Resource Requirements

  12. Issues for Discussion
Text Tables
  1. Financial Soundness Indicators: Core and Encouraged Sets
  2. Reporting of FSIs on FSAPs, 1999-2003
  3. Market Risk Stress Tests and FSIs on Sensitivity to Market Risk
  4. Essential FSIs for the Life Insurance Sector
  5. BCPs Containing Information Relevant to the Interpretation of FSIs
  6. Financial Soundness Indicators: Proposed Revision to Core and Encouraged Sets
  1. Analytic Framework for Financial Stability
  2. Plot of NPLs to Loans Ratio and the Corporate Leverage Ratio
  1. The Consultative Process on the Guide
  2. Modeling the Effect of Corporate Leverage on Asset Quality
  3. Insurance FSIs
  4. Using Interbank Stress Testing to Assess Systemic Risk