Whats the difference between a full FSAP update and a modular update?
A. A full FSAP update is a reassessment of a countrys financial sector, typically undertaken around 6-7 years after the initial assessment, with some differences in scope. Updates are more focused and concentrate on issues identified in the initial assessment. In addition to full updates, countries have the possibility, since 2009, to opt for more flexible modular updates. Instead of infrequent one-size-fits-all assessments, countries can have more frequent, targeted, and focused updates, assessing either financial stability (IMF) or financial development (Bank), together with more targeted, risk-based assessments of the international standards that apply to the regulation and supervision of banks, securities markets, and insurance. For countries with systemically important financial sectors, the Funds financial stability assessments every five years are a mandatory part of Fund surveillance.
