23:25 3 February 2022
IMF upgrades financial soundness indicators
The IMF has upgraded its Financial Soundness Indicators (FSIs) database to fully reflect methodological improvements introduced in the 2019 Financial Soundness Indicators Compilation Guide (2019 FSIs Guide). The new FSI database enhances the coverage and cross-country comparability of data, following the more prescriptive approach of the 2019 FSIs Guide. It also incorporates a set of new indicators on concentration and distribution measures (CDMs), which provide information on tail risks, concentrations, and variations in distributions that are not directly captured by the aggregated averages.
FSIs are key macro-financial indicators to assess the overall soundness of the financial system. The original database was launched in 2007. The release of the new FSIs data and metadata covering over 140 jurisdictions constitutes a major improvement in the data made available for macro-financial surveillance.
FSIs for banks have been upgraded to better gauge bank buffers compared to expected and unexpected losses. Additions such as new capital, liquidity, and asset quality metrics will serve to enhance the forward-looking aspect of the FSIs and to support increased policy focus on financial stability.
(WBJ)
