Financial Sector Assessment Program

The Financial Sector Assessment Program (FSAP) aims to promote the soundness of financial systems at national and international level, encouraging member countries of the International Monetary Fund (IMF) and the World Bank (WB) to implement their best regulatory and supervisory practices.

One objective of the FSAP is to detect potential vulnerabilities in the financial sector of member countries. It is an important tool used by the IMF to monitor the international financial system.

The evaluation of the Portuguese financial system within the scope of the FSAP was undertaken from late 2005 to mid-2006. It included, inter alia, an evaluation of the principles known as Basel Core Principles (BCP) for Effective Banking Supervision and International Organization of Securities Commissions (IOSCO) Objectives and Principles of Securities Regulation. As regards FATF Recommendations on the combat to and prevention of money laundering and terrorist financing – 40+9 FATF Recommendations – the evaluation was carried out by the FATF itself.

Main results of the FSAP: 

• Financial System Stability Assessment (FSSA) – document that integrates the conclusions of the mission, in the wake of a debate with the authorities, and includes the Reports on the Observance of Standards and Codes (ROSC);
• Detailed Assessments of Standards and Codes of the Basel Core Principles and the IOSCO principles – include a detailed assessment of observance of each standard evaluated by the FSAP; and
• Technical Notes, namely on Investor Protection, Disclosure and Financial Literacy, Stress Testing and Crisis Management and Safety Net – are intended to supplement the evaluation undertaken under the FSSA, with a more detailed analysis of some issues, reflecting the perception of IMF’s staff as regards the same issues.

See also Articles on supervision  and FATF