Financial Soundness Indicators - Background Paper
Author: International Monetary Fund. Monetary and Financial Systems Dept.
Publisher: International Monetary Fund
Published: 2003-05-14
Total Pages: 91
ISBN-13: 1498329470
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Financial Soundness Indicators
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2006-04-04
Total Pages: 302
ISBN-13: 1589063856
DOWNLOAD EBOOKFinancial Soundness Indicators (FSIs) are measures that indicate the current financial health and soundness of a country's financial institutions, and their corporate and household counterparts. FSIs include both aggregated individual institution data and indicators that are representative of the markets in which the financial institutions operate. FSIs are calculated and disseminated for the purpose of supporting macroprudential analysis--the assessment and surveillance of the strengths and vulnerabilities of financial systems--with a view to strengthening financial stability and limiting the likelihood of financial crises. Financial Soundness Indicators: Compilation Guide is intended to give guidance on the concepts, sources, and compilation and dissemination techniques underlying FSIs; to encourage the use and cross-country comparison of these data; and, thereby, to support national and international surveillance of financial systems.
Modifications to the Current List of Financial Soundness Indicators - Background Paper
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2013-11-14
Total Pages: 48
ISBN-13: 149834108X
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Financial Soundness Indicators for Financial Sector Stability in Viet Nam
Author: Asian Development Bank
Publisher: Asian Development Bank
Published: 2015-09-01
Total Pages: 117
ISBN-13: 9292570900
DOWNLOAD EBOOKFinancial soundness indicators (FSIs) are methodological tools that help quantify and qualify the soundness and vulnerabilities of financial systems according to five areas of interests: capital adequacy, asset quality, earnings, liquidity, and sensitivity to market risk. With support from the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Facility, this report describes the development of FSIs for Viet Nam and analyzes the stability and soundness of the Vietnamese banking system by using these indicators. The key challenges to comprehensively implementing reforms and convincingly addressing the root causes of the banking sector problems include (i) assessing banks' recapitalization needs, (ii) revising classification criteria to guide resolution options, (iii) recapitalization and restructuring that may include foreign partnerships, (iv) strengthening the Vietnam Asset Management Company, (v) developing additional options to deal with nonperforming loans, (vi) tightening supervision to ensure a sound lending practice, (vii) revamping the architecture and procedures for crisis management, and (viii) strengthening financial safety nets during the reform process.
Bank Profitability and Financial Stability
Author: Ms.TengTeng Xu
Publisher: International Monetary Fund
Published: 2019-01-11
Total Pages: 54
ISBN-13: 1484393805
DOWNLOAD EBOOKWe analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the role of non-interest income and retail-oriented business models. We then conduct panel regression analysis to examine the empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for 431 publicly traded banks (U.S., advanced Europe, and GSIBs) from 2004 to 2017. Results reveal that profitability is negatively associated with both a bank’s contribution to systemic risk and its idiosyncratic risk, and an over-reliance on non-interest income, wholesale funding and leverage is associated with higher risks. Low competition is associated with low idiosyncratic risk but a high contribution to systemic risk. Lastly, the problem loans ratio and the cost-to-income ratio are found to be key factors that influence bank profitability. The paper’s findings suggest that policy makers should strive to better understand the source of bank profitability, especially where there is an over-reliance on market-based non-interest income, leverage, and wholesale funding.
Insurance and Issues in Financial Soundness
Author: Nigel Davies
Publisher: International Monetary Fund
Published: 2003-07-01
Total Pages: 45
ISBN-13: 1451856008
DOWNLOAD EBOOKThis paper explores insurance as a source of financial system vulnerability. It provides a brief overview of the insurance industry and reviews the risks it faces, as well as several recent failures of insurance companies that had systemic implications. Assimilation of banking-type activities by life insurers appears to be the key systemic vulnerability. Building on this experience and the experience gained under the FSAP, the paper proposes key indicators that should be compiled and used for surveillance of financial soundness of insurance companies and the insurance sector as a whole.
Modifications to the Current List of Financial Soundness Indicators
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2013-11-14
Total Pages: 24
ISBN-13: 1498341098
DOWNLOAD EBOOKThe purpose of this paper is to inform Executive Directors on the outcomes of consultations conducted by the IMF’s Statistics Department (STA) on revising the current list of FSIs in response to the global financial crisis and the adoption of a new regulatory framework under the Basel III Accord. In addition, the G-20 Data Gaps Initiative calls on the IMF to review the FSI list (Recommendation no. 2). STA has undertaken these consultations in close collaboration with a broad-based group of national and international experts, international standard setting bodies, IMF’s relevant departments and all FSI-reporting countries and concerned international organizations
Financial Soundness Indicators Compilation Guide 2019
Author: International Monetary Fund. Statistics Dept.
Publisher: International Monetary Fund
Published: 2019-12-27
Total Pages: 218
ISBN-13: 1513510940
DOWNLOAD EBOOKThe 2019 Financial Soundness Indicators Compilation Guide (2019 Guide) includes new indicators to expand the coverage of the financial sector, including other financial intermediaries, money market funds, insurance corporations, pension funds, nonfinancial corporations, and households. In all, the 2019 Guide recommends the compilation of 50 FSIs—13 of them new. Additions such as new capital, liquidity and asset quality metrics, and concentration and distribution measures will serve to enhance the forward-looking aspect of FSIs and contribute to increase policy focus on stability of the financial system.
Sweden
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Published: 2016-11-17
Total Pages: 61
ISBN-13: 1475554613
DOWNLOAD EBOOKThis paper discusses the findings of the Financial System Stability Assessment for Sweden. The Swedish financial system is large and highly interconnected, putting a premium on the accompanying policy framework. Relative to the size of the domestic economy, the financial system is among Europe’s largest. It features complex domestic and international linkages, reflecting Sweden’s role as a regional financial hub. However, the macrofinancial risks have grown since 2011, for example the rising share of highly indebted households. Stress tests also suggest that banks and nonbanks are largely resilient to solvency shocks, but concerns persist about the ability of bank models to capture unexpected losses.
Financial Soundness Indicators and Banking Crises
Author: Matias Costa Navajas
Publisher: International Monetary Fund
Published: 2013-12-23
Total Pages: 38
ISBN-13: 1484327616
DOWNLOAD EBOOKThe paper tests the effectiveness of financial soundness indicators (FSIs) as harbingers of banking crises, using multivariate logit models to see whether FSIs, broad macroeconomic indicators, and institutional indicators can indeed predict crisis occurrences. The analysis draws upon a data set of homogeneous indicators comparable across countries over the period 2005 to 2012, leveraging the IMF’s FSI database. Results indicate significant correlation between some FSIs and the occurrence of systemic banking crises, and suggest that some indicators are precursors to the occurrence of banking crises.
