The International Monetary Fund (IMF) has published a Public Information Notice (PIN) outlining its Executive Board’s review of experiences with the Financial Sector Assessment Program (FSAP).
The FSAP, a joint IMF and World Bank effort, was introduced in May 1999, and aims to increase the effectiveness of efforts to promote the soundness of financial systems in member countries. Supported by experts from a range of national agencies and standard-setting bodies, work under the program seeks to identify the strengths and vulnerabilities of a country’s financial system; to determine how key sources of risk are being managed; to ascertain the sector’s developmental and technical assistance needs; and to help prioritize policy responses.
The Staff of the Monetary and Financial Systems Department of the IMF prepared a Financial Sector Assessment Program Background Paper which was also released. The Background Paper includes a Review of Common Issues and recommendations; Survey of Post-FSAP Feedback Responses; Central Banks’ Financial Stability Reports: Recent Trends and Lessons for Financial Sector Surveillance; and Preliminary Lessons for the FSAP and Other Financial Sector Work.
The IMF also recently published its Progress Report on the Assessment Programme for Offshore Financial Centres (OFC).
*Note: The last IMF Module 2 Review of The Bahamas assessed BCP (Basel Core Principles); SCP (IOSCO Objectives and Principles of Securities Regulation) and AML/CFT Standards (based on methodology endorsed by the Fund and the FATF.) The Executive Board of the International Monetary Fund (IMF) concluded an Article IV consultation with The Bahamas in 2003. Under Article IV of the IMF’s Articles of Agreement, the IMF holds these bilateral discussions with members, a process whereby a staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies.*