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IMF Makes Financial Stability Reviews Mandatory for 25 Members

28 September 2010 14:32 (UTC +04:00)

Baku - APA-Economics. The International Monetary Fund will do a mandatory financial stability assessment of 25 member countries or jurisdictions with financial industries large enough to destabilize the global economy, BusinessWeek reported.

The decision â€œrepresents an important part of the international communityâ€™s response to the recent crisis and will buttress our ability to exercise surveillance over a key aspect of the global economic machinery - the financial system,â€ IMF First Deputy Managing Director John Lipsky said in an e-mail statement today.

The so-called Financial Sector Assessment Program, which was created in the wake of the Asian financial crisis, had been voluntary until now. The IMF published its report on the U.S. in July, saying the financial system remains fragile and banks subjected to additional economic stress might need as much as $76 billion in capital.

The IMF identified 25 jurisdictions as â€œhaving systemically important financial sectors,â€ including emerging economies such as China, Mexico and Turkey, according to the release.