Economy
IMF Revamps Financial-Sector Assessments as Africa Faces New Digital and Debt Risks
Capital Ethiopia · 3 hours ago · Read the Full Story on Capital Ethiopia
AI SUMMARY
The IMF has approved reforms to its Financial Sector Assessment Program to better address rising public debt, rapid digitalization, non-bank finance, and climate risks.
- The IMF Executive Board concluded its periodic review of the Financial Sector Assessment Program on September 3.
- The program provides detailed examinations of a country’s financial sector, including banks, insurers, and payment systems, jointly with the World Bank in developing economies.
- Since its launch in 1999, the Fund has completed 416 assessments in 161 member countries.
- The revised program will place greater emphasis on system-wide and emerging risks, including digitalization, artificial intelligence, crypto assets, and climate shocks.
- Assessments will adopt a more risk-based and modular approach shaped by stronger initial diagnostics.
- The reforms integrate FSAP findings more closely with regular Article IV consultations and capacity-development work.
- The review updated the methodology for identifying jurisdictions with Systemically Important Financial Sectors by adding an element of staff judgment.
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