Tools for Assessing Financial System Soundness
Tools for Assessing Financial System Soundness Hello friends. let's understand the most important factor of financial system. if you are into very keen to understand banking & finance you must read this article Financial Sector Assessment Program Financial Sector Assessment Program (FSAP), introduced in May 1999. Many other national and international institutions have also initiated or intensified monitoring work. The ability to monitor financial sector soundness presupposes the existence of valid indicators of the health and stability of financial systems. These macro prudential indicators (MPIs) matter for several reasons. They allow for assessments to be based on objective measures of financial soundness. If MPIs are made publicly available, they enhance disclosure of key financial information to the markets. In addition, if the indicators are comparable across countries —which is possible if countries adhere to internationally agreed prudential, accounti