The IMF’s financial surveillance in Europe – experiences with FSAPs

ECB’s Occassional Paper reviews the experiences of IMF’s Financial Sector Assessment Program in Europe:

Cross-border financial integration has increased the need to make suitable multilateral arrangements for global financial cooperation and oversight – these include more intense and more effective financial sector surveillance by the International Monetary Fund (IMF). The financial sector has a crucial role to play in addressing today’s global health emergency, and it is important that it remains sufficiently resilient to facilitate the prompt return to more orderly economic conditions worldwide.

Financial sector surveillance has become a central element of the IMF’s work over the years, and is currently articulated across three main dimensions (bilateral, multilateral and regional, which include currency areas such as the euro area).1 Article IV (AIV) consultations and Financial Sector Assessment Programs (FSAPs) are the main tools used in bilateral financial surveillance.
This report focuses on the Fund’s FSAPs and their links with AIV consultations. It is based on the experiences and views of ESCB members involved in conductingFSAPs and AIV missions.2
The main objective of the report is to help the authorities of the EU and its Member States formulate their own views and prepare common EU  messages in two separate but interrelated reviews of the IMF’s financial surveillance framework (the 2020 FSAP Review and the Comprehensive Surveillance Review or CSR).

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