Financial Sector Assessment Program—Objectives, Procedures, and Overall Framework
to avoid duplication of efforts, and to promote consistency of advice on financial sector issues through an integrated analysis of both development and stability issues. Although country participation in the FSAP is voluntary, the program has been structured from the outset as a means to strengthen the monitoring of financial systems in IMF’s bilateral surveillance through Article IV consultations (which is mandatory) and as a means to promote economic development and to reduce poverty through the World Bank’s development work to strengthen the financial sector.
After intensive discussions by both Bank and Fund Boards on the lessons from the pilot program, the program was made a regular feature of Bank and Fund operations in a comprehensive review of the program in December 2000 and January 2001. The program was further streamlined in the subsequent reviews of the program by both Boards in March/April 2003 and in February/March 2005. See box 1.1 of chapter 1 for a brief history of FSAP.