The Bank and IMF have established the Financial Sector Assessment Programme (FSAP) to assess financial stability in all member countries and prevent crises. The Programme aims to identify financial system weaknesses and develop policy responses backed by both insititutions.
The IMF will produce a Financial Stability Assessment (FSA) and is focussing on links between the financial sector soundness and macroeconomic performance. The FSAP report will feed into the Fund’s annual Article IV consultations, but neither the FSAP report nor the FSA will be made public.
The pilot programme will run for a year. To date joint assessments have been carried out in Colombia and Lebanon. Three more (South Africa, Canada and Iran) are scheduled. A report will be discussed by the International Monetary and Finance Committee and the Development Committee at the Spring meetings next April.