What is an FSAP?
A. The Financial Sector Assessment Program (FSAP) provides in-depth examinations of countries financial sectors. FSAPs assess both the stability of the financial system and its potential contribution to growth and development, and provide recommendations to strengthen the financial sector. Assessments are done jointly by World Bank and IMF staff in developing and emerging market countries (IBRD countries) and by the IMF alone in advanced economies. • Assessing financial stability, the main responsibility of the Fund, involves examining the soundness of the banks and other financial institutionsparticularly the systemically-important ones, conducts stress tests, rating the quality of financial supervision against accepted international standards, and evaluating the ability of supervisors to intervene effectively in case of a financial crisis to provide emergency liquidity or deal with insolvent institutions. Stability assessments also analyze the possible linkages between the domestic f
