How has the FSAP adapted in light of the crisis?
A. Since September 2009, the IMF and World Bank have been revamping the program. The FSAP is still a joint Bank-Fund program (except for advanced countries, where FSAPs are the sole responsibility of the Fund), and country participation is still voluntary for countries with non-systemic financial sectors. However, there are four important changes: • First, several initiatives are under way to improve the quality of assessments and incorporate the lessons from the recent crisis. The Fund is improving its stress testing tools, to make sure that they take into account all sources of risk and that simulated shocks are strong enough. Teams are paying more attention to crisis preparedness and crisis management frameworks, including arrangements for institutional cooperation within and across national borders. New methodologies are being developed to identify systemically important financial institutions. In addition, the Fund is working to make assessments more candid and comparable across c
