What Can We Learn from Financial Stability Reports?

July 30, 2021

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Format: Chicago

Fabio Comelli, and Sumiko Ogawa. What Can We Learn from Financial Stability Reports?, (USA: International Monetary Fund, 2021) accessed December 26, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper reviews the approaches to systemic risk analysis in 32 central bank financial stability reports (FSRs). We compare and contrast the systemic risk analysis in FSRs with the IMF Article IV staff reports, noting that Article IV staff reports and FSRs frequently pick up analytical content from each other. All reviewed FSRs include a systemic risk assessment, which has not always been the case in Article IV staff reports. Also, compared to Article IV staff reports, on average, FSRs tend to cover a wider range of financial risks and vulnerabilities and tend to have more extensive discussions of the policy mix to mitigate systemic risk. In these assessments, FSRs utilize sophisticated analytical tools, such as stress tests and growth-at-risk, more frequently than Article IV staff reports. We emphasize that a central bank FSR typically presents a rich resource that IMF country teams can leverage, as already done by some, in forming their independent view about systemic risk.

Subject: Financial sector policy and analysis, Financial sector stability, Macroprudential policy, Stress testing, Systemic risk, Systemic risk assessment

Keywords: Caribbean, Central bank FSR, Financial sector stability, Global, IMF article IV consultation, IMF article IV staff report, IMF article IV surveillance, IMF country team, Macroprudential policy, Stress testing, Systemic risk, Systemic risk assessment

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/200
Stock No:

WPIEA2021200
ISBN:

9781513584294
ISSN:

1018-5941

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