FSSAs focus on strengths, risks, and vulnerabilities in the financial system in a broader macroeconomic and macroprudential context than previously, resulting in an overall stability assessment. Thus, the FSSAs link the FSAP and the monitoring of financial systems under Fund surveillance. Analyses conducted in the context of the FSSAs serve to focus on the likely consequences of alternative macroeconomic policy mixes and exogenous shocks and the implications of financial sector reforms for financial sector profitability, solvency, and liquidity. From the Bank's perspective, the FSAP is part of the ongoing policy dialogue between bank staff and national authorities. The FSAP's diagnostic work provides a comprehensive assessment of a country's financial sector, which serves as the basis for the Bank's country assistance strategy and the provision of technical assistance.
Authorities can decide to publish the FSSAs and the FSAs.
So far, experience with the FSAP has been positive. The FSAP has helped ensure that financial sector analysis becomes part of the core of economic policy discussions and has provided national authorities with a strategic framework for strengthening and further developing their financial systems. For instance, in some cases the linkages between high interest rates and nonperforming loans have been highlighted, which has allowed a more considered analysis of the sustainability of high interest rates. In other cases, the FSAP has highlighted the need to reinforce banking supervision, improve financial sector legislation, reduce risks in payment and securities settlement systems, and strengthen sovereign debt management. Follow-up assistance has been provided, for example, with regard to the design of deposit insurance and the development of credit registries.